Inflationists on the loose

Watch out: a dangerous breed comes creeping back.
Caroline Baum explains:
Feb. 17 (Bloomberg) -- Policy makers are looking for measures to avert the next financial crisis. Most of the proposed solutions involve enhanced regulation. Economists at the International Monetary Fund have a better idea: higher inflation.
Yes, that’s right. After a multidecade effort to become credible and anchor inflation expectations, central banks are now supposed to throw it all away in order to have more room to maneuver in financial crises.
Start with the inflation target, or ceiling, most central banks have adopted of 2 percent, multiply by five, add six, divide by four, and bingo! That’s the new, improved inflation target of 4 percent, according to IMF economists Olivier Blanchard, Giovanni Dell’Ariccia and Paolo Mauro, authors of a new paper, “Rethinking Macroeconomic Policy.”
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Link to IMF paper
Comment: One may only wonder about the frivolity how so-called top-economists treat serious matters. Well, anyway, they have been trained in the kindergarden of silly math and can do no better. The inability to learn is striking. Yet what is a joke for them, is a tragedy for the American people. They do not know that price inflation is the consequence of this policy mix of easy money, fiscal stimuli and bailouts. Inflation completes the destructive work that was initiated by this trinity. It was John Maynard Keynes himself who aptly described this process that “engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose”. Indeed, Keynes was not a Keynesian, and upon the modern self-styled Keynesian the old master would probably spill even more contempt and ridicule than he did on his contemporary followers.
Easy money policies, malinvestment, bailouts, more easy money policies, fiscal stimuli and so on, go hand in hand. There is no end to this vicious cycle until everything comes falling apart.