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It might be worth sacrificing a permanent increase in inflation for a temporary cut in unemployment--if the increase in inflation were tiny, and if the drop in unemployment were big and prolonged (albeit not permanent).
ECONOMIST: Up the NAIRU without a paddle
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Key to mitigating the damage of the about-to-worsen inflation is making permanent the tax cuts of 2003--or at least extending them for a couple of years.
FORBES: Mitigating Inflation's Fallout
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In the 1970s, for example, blunders in monetary policy led to horrendous inflation, which people took to be permanent.
FORBES: Our Cover Story
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It set a higher permanent exemption for 2012 and indexed that and other AMT parameters for inflation.
FORBES: How the New Tax Act Affects the Alternative Minimum Tax
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His four-party coalition, ranging from conservatives to social democrats, was a creature of circumstances the success of Mr Cardoso's 1994 anti-inflation plan and was never likely to be permanent.
ECONOMIST: Brazil
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Even so, change will occur only slowly, maybe over decades and then only if borrowers and lenders come to believe that low inflation which makes fixed-rate debt less risky is permanent.
ECONOMIST: European monetary union
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The patch, which adjusts the AMT exemption for inflation, has been passed repeatedly on a temporary basis, but now would be made permanent.
FORBES: The U.S. Is Going Over The Fiscal Cliff, But A Tax Deal Might Cushion The Landing