>Was it really a full decade ago that Larry Summers and I wrote about
>how it would be unwise to push trend inflation far below five
>percent because of the danger that one might then find that a single
>adverse shock would get the economy wedged into such an unpleasant
>position?
5%? My god, that seems almost Weimarish these days.
What about the absence of inflation making it difficult to cut real wages? Is that part of the unpleasantry?
Doug