What is the optimal inflation rate for the United States?

Taking into consideration the public finance issues of seigniorage, alternative sources of revenue, the costs and benefits of inflation on a microeconomic level, and the macroeconomic effects of steady-state inflation or deflation, propose a target rate of inflation to be pursued as long-run Federal Reserve policy. You may ignore issues of price-index measurement and assume that inflation is measured accurately.

Your essay should be no longer than three double-spaced pages. It is due before class on Monday, November 22.