Given the almost monolithic failure on the part of economists to predict our present economic malaise, more than a few commentators have taken to asking why we rely on economists at all. Recent statements by economists Gregory Mankiw and Kenneth Rogoff lend credence to the discontent among the lay commentariat.
As Bloomberg reported on May 19th, Rogoff and Mankiw think heightened inflation is the cure for our sagging economy. In Rogoff’s case, he’s advocating “6 percent inflation for at least a couple of years”, while Mankiw says the Federal Reserve should pledge to create “significant” inflation. As the article noted, inflation “would make it easier for debt-strapped consumers and governments to meet their obligations”, plus it might encourage “Americans to spend now rather than later when prices go up.”
Mankiw & Rogoff: Why We Don’t Need Economists – John Tamny, RCM
