I do not think that we should take Dr. Mankiw's advice seriously (It may be time for the Fed to go negative, New York Times, Sunday, April 19, 2009: Business Section).
If we took his advice, inflation would wipe out the only remaining strength in our 401k portfolios: the fixed income portion.
We should remember Mr. Mankiw's track record. He was President George W. Bush's Chair of the Council of Economic Advisers from 2003-2005. A period during which the Iraq war was fought "off the books;" a period during which the bases of our current economic woes were created.
Would any responsible economic adviser allow that? I think not.
Sent to New York Times
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