Saint,
You are quite right again. However there is still scope for fear of inflation to work. All is needed is for Bernanke and others like him to say that they are going for full employment no mater what, even if they do not mean it. However this is very unlikely to happen.
http://www.bloomberg.com/news/2012-02-02/bernanke-says-he-won-t-sacrifice-inflation-goal-for-more-employment-growth.html
are people really aware?, page-21
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