- For conservatives, current high rates of inflation should not be too upsetting.
- Higher inflation reduces the outstanding value of government debt.
- Higher inflation could mean lower taxes tomorrow.
- Inflation redistributes resources to more mobile and more productive individuals.
- The Fed should stick to its mandate for price stability.
A Little Inflation Is Good for the Conservative Cause
Not only do higher prices reduce the relative value of government debt, they may also make the economy more dynamic.
