Reality Check

ALAN BLINDER SAYS he isn't soft on inflation. At his May 6 Senate confirmation hearing, the Clinton Administration's nominee for Federal Reserve Board vice-chairman rebutted Wall Street suspicions by quoting from his 1987 book, Hard Heads, Soft Hearts. Here's what Blinder, a former BUSIness week columnist, read to the senators: "Inflation does indeed bring losses of efficiency. It also makes people feel insecure and unhappy. We would no doubt be better off without it."

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