There’s absolutely no reason to expect high inflation in foreseeable future, especially coupled with low growth and high unemployment.[/quote]
Agreed. There’s massive slack in the economy between high unemployment and WAY below-trend capacity utilization. It’s going to take several years for that slack to get taken up. The question isn’t what inflation is going to be like over the next 3 or so years, it’s what it’s going to be like 4+ years out and how effective the Fed is at soaking up liquidity by that time. And the jury is out, by definition, on that one.
