The powers that be have lost faith in their ability to fight inflation

[Kurt_and_Hunter]

Every since the 1980-1983 Volker recessions inflation has been a remembered terror, like polio or the Kaiser.

It was bad. Then we defeated it.

The modern generation of policymakers have never really fought inflation. They have had it caged for thirty years and just assume that if it ever got out it would be an uncontrollable scourge. (Since 1983 we no longer reign in inflation. We reign in bubbles, and usually a year or two too late.)

Here is the right way to handle the economy:

1) Pump the economy ever way you know how to seek something like full-employment.
2) At some point some inflation may develop. That is a good thing. That's how you know it's working. We have printed something like ten trillion new dollars out of thin air the last two years and deficit spent heavily without sparking any inflation, so it's not exactly easy to do in these conditions.
3) If inflation develops, then you know you are getting some traction. Then fight inflation using the usual old-fashioned methods.

Instead economies around the world have preceded on the assumption we should not seek full employment because it might create some inflation, and if it did it would be the end of the world.

It is like if you are stuck in snow. You spin the tires and the car inches forward a bit. As the car edges forward you will eventually hit dry road and have to apply the brakes.

If you try to get out of the snow with your guiding principle being that you must do so in a manner that guarantees you will never apply the brakes at any point in the process then you are not likely to get out of the snow.