Earlier this month, the chief of the Minneapolis Fed gave an extraordinary speech http://bit.ly/1qUTucn in which he called for higher inflation.
That’s right — you and me, paying more for goods and services. Why would a central banker want something like that?
To Minneapolis Fed President Narayana Kocherlakota, policymakers who worry about too-high inflation are caught in a time warp from the 1970s, when price rises were in the double digits and President Gerald Ford was organizing the “Whip Inflation Now” campaign, or WIN for short.
The White House at the time commissioned Broadway hit maker Meredith Willson to write a theme song. Kocherlakota quotes the lyrics:
“Who wants inflation? Not this nation! Who’s going to pass it by? You are, and so am I.”