Bernanke and Inflation

No one ever accused Allan Meltzer of being soft on inflation:

Allan Meltzer: I think the best measure of Mr. Bernanke’s credibility is the bond market, and there is no sign there that traders expect big inflation or even much inflation.

There are enough anti-inflationists at the Fed that even if Mr. Bernanke were mild on inflation—and I don’t think he is—there would not be a majority supporting that position. So I don’t think inflation-fighting credibility is Mr. Bernanke’s problem.