There's quite a bit of inlfation chatter going around these last few days. Some are concerned that the behavior of central banks around the world in applying varying degrees of quantitative easing policies will bring about inflation . Domestically, the question of inflation seems to center on whether or not the Federal Reserve has the capacity to fight inflationary threats that might come down the road. Columbia University economist , and former Fed governor, Frederic Mishkin , writes in today's Wall Street Journal that " the Fed is boxed in ." Alan Blinder says there are plenty of choices for things to worry about, but inflation shouldn't be at the top of the list. Blinder, professor of economics and public affairs at Princeton, former Vice Chairman of the Fed, and author , put forward three reasons he is not concerned with the Fed's capacity in the New York Times: The possibilities for error are two-sided. Yes, the Fed might err by withdrawing bank reserves too slowly, thereby leading to higher inflation. But it also might err by withdrawing reserves too quickly, thereby stunting the recovery and leading to deflation. I fail to see why advocates of price stability should worry about one sort of error but not the other. The Fed is well aware of the exit problem. It is planning for it, is competent enough to carry out its responsibilities and has committed itself to an inflation target of just under 2 percent. Of course, none of that assures us that the Fed will hit the bull’s-eye. It might miss and produce, say, inflation of 3 percent or 4 percent at the end of the crisis — but not 8 or 10 percent. The Fed will start the exit process when the economy is still below full employment and inflation is below target. So some modest rise in inflation will be welcome. The Fed won’t have to clamp down hard. Read Why Inflation Isn't the Danger here .