Faster Inflation Would Help...Really!
If such persistently low inflation is a symptom of weak growth, it's not exactly obvious that faster inflation itself would lead to improved growth rates. Isn't this mistaking an outcome variable for an input variable? In fact, there are various ways in which higher inflation can help at a time like this.
Jared Bernstein, Contributor
Fmr. Obama administration economist; CNBC and MSNBC contributor