Gradually, people are becoming aware that we have an inflation problem, which seems to stretch around the world. Perhaps it is time to think about how to resolve it. Certainly a few coy remarks by some Federal Reserve representative aren't going to be effective. If that were all it took, then nobody would ever have an inflation problem. You would just say, "we are concerned about inflation," and it would disappear - poof! - like a cartoon genie. Sorry: not quite so easy. Inflation is childishly simple to understand, but economists like to remain confused. When a currency loses value, markets gradually adjust to reflect this new development. When the dollar's value falls in half, things that cost $10 eventually cost $20, more or less. It's no more complicated than that. The dollar's decline is best measured against gold - for centuries considered a stable measure of value. The dollar is now worth about 1/900th of an ounce of gold, compared to about 1/350th on a...