How we have come to equate inflation with “people’s welfare” is mind boggling. Maybe take a look at countries with inflation problems - it’s not great. Even if you believe in the power of inflation to add jobs, the underlying theory is that wages are sticky thus real wages fall. That may be desirable at certain times in an economic cycle, but it’s hardly some obvious boost to welfare.

Nominal tools have only nominal effects in the long run. Presumably we want real gains. To do that we need be more productive, which oddly gets very little attention. It’s as though we’ve given up on real solutions and are hoping the money illusion has some magical powers to create welfare. Economic discourse is going backwards.

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