DOES THE FED TARGET INFLATION? OR INDIRECTLY TARGET THE CONSUMPTION OF PRODUCTIV

DOES THE FED TARGET INFLATION? OR INDIRECTLY TARGET THE CONSUMPTION OF PRODUCTIVITY?

***The total rate of inflation does not fully account for the externalities – ie: what happened to productivity? Although the theory that inflation is consuming productivity still seems to be the most likely candidate. That we are inflating away productivity increases, and it is actually the rate at which we inflate away productivity increases that the government is unknowingly targeting, not the rate of inflation seems both possible and probable. If this is true then it’s catastrophic. And at least logically it appears to be true.****