Potentially Good Economic News

I am as happy as anyone to see that the economy grew by 4%, though as the New York Times story indicates, there is a question as to whether this means that the economy is picking up steam for significant long term growth, or whether it is merely making up for contractions earlier in the year. I would desperately like to believe the former, but until we see clear and convincing evidence of the former, the Federal Reserve would be wise to continue its monetary stimulus program. And since I know that there are plenty of people who are concerned about the advent of inflation, let me take this moment to remind them that there is no evidence whatsoever that inflation is on the horizon, which means that the scaremongering regarding inflation has to stop. What the economy needs desperately right now is growth and jobs. Once it overheats, we can feel free to start worrying about inflation. But we aren’t even in that universe yet.