Is Inflation the Right Battle?
The Federal Reserve and other central banks are coming under growing pressure to rein in rapid price growth. But headline inflation numbers are the only indication that rising inflation is a problem, or even a reality, and there is no sign anywhere of a wage-price spiral.
BERKELEY – The Federal Reserve and other central banks are coming under pressure from two directions these days: from the left, they are pressured to do something to expand demand and hold down global unemployment; from the right, they are pressured to contract demand to rein in inflation.