It is mostly the momentum from that fist jump, out hyperinflation right after the Nixon Shock. That initial jump required a series of adjustments to the entitlements, a bit of revenue sharing, then a longer period of disinflation.
We can change the sequence a bit, lower that initial jump, then do a contract renewal mid stream. We can this time slightly better than last time.
He bumps up against Overton:
Instead of having the Fed review its "strategy, tools, and communication practices" every five years, as recommended by the FOMC, it is time for Congress to step up to the plate and not only examine the Fed's performance but discuss alternatives to the current dual mandate. Considering NGDP targeting is only one possible rules-based alternative.
Hints at the obvious:
But, if the Fed's primary mandate is long-run price stability, should it be the job of the Fed to spike inflation?
The devaluation tax is the responsibility of the Senate.
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