Setting Inflation Targets, Desert Islands, etc.

So, the Feds have set a 2% inflation target, which they won’t get, and now Ken Rogoff says it should set a 6% percent target, which is doubly dreamy and the Fed won’t get. Such fanciful nonsense reminds me of that clichéd joke about an economist on a desert island:

A physicist, a chemist and an economist are stranded on an island, with nothing to eat. A can of soup washes ashore. The physicist says, "Lets smash the can open with a rock." The chemist says, "Lets build a fire and heat the can first." The economist says, "Lets assume that we have a can-opener…"

Near-term inflation targeting in economic conditions like we have at present is like saying, "Let’s assume that we have no deflationary depression …."

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