The article makes the argument that 'inflationphobia' holds the economy back and can threaten growth as constant fear of inflation will both tighten money supply and potentially drive inflation itself.
The article mentions that many 'inflationphobes' see it necessary to tighten money supply in order to stop the impending threat of inflation, though the argument is made that this will reduce economic activity as investors will find it more difficult to acquire loans from banks, which will reduce inflation but it will likely increase unemployment as well which could in turn lead to an equally threatening situation being disinflation, greatly reducing consumption and increasing unemployment. Many 'Inflationphobes' criticize the fed for adopting an 'easy money' policy, allowing investors to receive loans easily increasing aggregate demand driving up price levels up. Many see this as the pathway to hyperinflation since increasing inflation can become a slippery slope which would cause a similar situation as seen in Zimbabwe and Germany where hyperinflation had occurred. Many have pointed to rising gold prices as a sign of impending inflation though the argument is that this rise in price is not a sign of inflation but instead a sign of increasing fear of inflation as many see gold as a safe method of protecting there savings from inflation and as demand for gold rises so will prices.
Despite these arguments the fed continues to use an 'easy money' policy and there is no sign of rapidly increasing inflation. Inflation can be considered a good thing as it does encourage consumers to spend sooner and save less as inflation will cause the value of their savings to fall which will increase economic activity. So inflation can be very beneficial for an economy if it is well controlled. Controlling inflation is a very difficult job and many say that the gold standard is the best way to control it as gold prices are usually quite stable but this reduces the flexibility of the fed and they cannot control money value in order to respond to changing economic conditions for example during a recession it is very difficult to use an 'easy money' policy to increase economic activity as the money supply is limited to the amount of gold that the reserve