> Fed inflation policy is, and always has been a substitute for pay cuts for laborers. No, that's Congress' fault, not the Fed. The Fed only controls the denom

> Fed inflation policy is, and always has been a substitute for pay cuts for laborers. No, that's Congress' fault, not the Fed. The Fed only controls the denominator. Congress controls the numerator. Inflation-adjusted minimum wage and support for unions would significantly alter the landscape. Inflation has benefits, too, and it is generally accepted that a low, fixed, predictable inflation rate is the optimal outcome. Generally all the worst periods in history have been deflationary, not inflationary.