It's Time to Start Hoping for More Inflation - U.S. News

http://www.usnews.com/news/articles/2013/11/05/its-time-to-start-hoping-for-more-inflation

The article is more up to date then my last. This is from November 5th this year. I read the article and was a little confused. Inflation has been persistently below 2 percent objective, which is really good, but in the article it says that it could pose risks to economic performance. The Fed is not afraid that prices are spiraling out of control, it's that inflation is getting to low. not that prices are spiraling out of control. The article states; "Instead, the latest statements from the Federal Open Market Committee, the Fed committee tasked with setting interest rate policy, show the Fed is keeping its eye on whether inflation is getting too low."

I wonder how inflation can be too low. All I have ever heard in my seventeen years is all the negative inflation has on an economy, never anything good. The article gives a simple version of how inflation can boost growth; "Consider a city with a lot of renters. Apartment owners may see some young and relatively high income people move into the city and decide they can charge more for rent. If that happens on a broad enough scale, more employers may feel the need to raise their wages in order to attract workers. Ideally, that raise leaves workers with some leftover money to spend or save elsewhere, making them richer in real terms. And the money from higher rents, meanwhile, could lead rental companies to hire more workers or boost pay to their workers, which could also be an economic boost." From this example I can see how inflation can sometimes help boost the economy, but I just think there are so many negative affects that we should be happy that inflation is low. I think that also if we try to raise inflation to help boost the economy it will just get out of control and end up stunting economic growth instead of boosting it.