The progressive issue many progressives don't seem to like

[cthulu2016]

89. Your assumption that I suggest such a causality is erroneous

The OP is about traction in monetary policy.

Of course inflation doesn't cause growth, intrinsically. Who ever said it does?

Inflation is, however, necessary to monetary policy traction in a liquidity trap environment.

The stimulative benefit would come not from inflation, but from Fed rates being low relative to inflation. Without inflation the Fed cannot effectively "cut" rates. (By leaving them unchanged at zero)

If, however, inflation developed and the Fed raised rates to match then there would be no stimulative effect.

Two step process. 1) Inflation, 2) Fed does not raise rates in response to that inflation.

Actually a thre step process. The Fed also needs to promise in advance, and be believed, that it will not be quick to raise rates in response to inflation. That's why Bernanke keeps announcing that rates will remain at zero into 2014. It's an assurance that the Fed does not plan to pounce on any inflation. The missing ingredient is, of course, the inflation that won't be pounced on. With no fiscal stimulus coming from Republicans that's a tough nut to crack. (The role of that promise is all worked out in Krugman's famous paper on deflation in Japan—an early and important analysis of monetary policy in the context of zero-rates.)