Yales economics; inflation as grease

... a little inflation may be necessary to grease the wheels of the labor market and enable efficiency enhancing changes in relative pay to occur without requiring nominal wage cuts by workers. The attempt to push inflation too low could permanently raise unemployment and reduce the scope for monetary policy.

Looks like the 'grease' analogy is a Tobin / Yale thing.

Wonder whether there's an LSE paradigm in anything.

Hmm.

:)