Businessweek Promotes Keynesian Economic Myth That Inflation Means Economic Growth

Businessweek reports:

Very low inflation goes hand in hand with weak economic growth, so it’s worrisome that bond investors are expecting inflation to be low even five to 10 years from now. A measure of expected future inflation called the “5-year forward 5-year inflation breakeven rate” has dropped sharply in the past few weeks, a point noted in a speech today by Charles Evans, the dovish president of the Federal Reserve Bank of Chicago.

This Keynesian myth really is embarrassing. History says the opposite. Deflation goes with economic growth.