Fed's Kocherlakota floats overshooting U.S. inflation in future

(Reuters) - U.S. inflation may not climb back to 2 percent until 2018, so the Federal Reserve should consider overshooting that target for a few years afterward to make up for the current period of low prices, a top Fed policymaker said on Wednesday. 

Under price level targeting, the Fed would let inflation run above its 2-percent goal in the years ahead to make up for the currently low prices for goods in the economy. As it stands, the Fed practices "inflation targeting" in which it aims for the goal at all times irrespective of past trends.

DYI Comments:  With all of the upcoming government liabilities for Social Security and Medicare during the 2020's the Fed's know that pressure will come to bear to monetize a portion of the debt.  As Boomer's exit the work force (at least full time) the 2020's will be seen as the roaring twenties with high inflation, high taxes, and a labor shortage.  As Boomer's exit full time employment (but still consuming [at a lessor pace]) this will create a decade long labor shortage.  It will end as the this huge generation (76 million) begin to pass on in significant numbers during the 2030's.

DYI