R. Glenn Hubbard, former chairman of the Council of Economic Advisers and current professor of economics at Columbia, writes in the WSJ to calm fears of deflation, but ends with: ”the Fed’s objectives would be better served by identifying an acceptable range of inflation and setting a floor beneath it, which would trigger corrective expansion. Given measurement problems in price indexes, broad inflation in the 2% range is consistent with price stability.” What, then, does the annualized flat CPI in April 2003 imply? Inflate!
Wanted: Low and Stable Inflation
