The Case for Inflation

Our 1970s fears still loom large, but higher growth may be worth higher prices

Harry Campbell for TIME

Correction Appended: Dec. 5, 2011

Republican presidential candidates from Newt Gingrich to Rick Perry promise to fire Fed Chairman Ben Bernanke, apparently for doing too much to save the U.S. economy since the financial crisis. Most everyone else is wishing he'd do more. In fact, there's a growing chorus of economic-policy wonks of all stripes who would like to see the Fed forget its two-tier mandate to keep inflation low and employment high and instead boost growth at all costs — even at the risk of higher inflation.

Worries about inflation are a key reason the Fed hasn't launched another...

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