Would the U.S. economy benefit if the Federal Reserve took deliberate action to increase the rate of inflation? That is the question addressed in a very recent and widely discussed article from the New York Times. The article quotes numerous business leaders and policy analysts, all of whom make interesting and valid points. Most significantly the article reminds us of several important lessons provided by modern macroeconomics. These lessons can help contribute to the success of the Fed’s monetary policy strategy, both in the short term and over the long run.