The Mirage Of Zero Inflation

It looks good but could hurt growth

Thanks to Alan Greenspan's Federal Reserve, inflation is currently running below 3% on a year-to-year basis, a 30-year low. Yet some economists and policymakers want to go further and pursue the elusive target of zero inflation. Senate Republicans have been pushing legislation to change the Fed's official mandate from promoting high employment and stable prices to the single goal of achieving price stability.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.