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The United Methodist Church affirms biblical infallibility. Biblical infallibility is usually defined as the belief that the Bible is a reliable guide in matters of faith and practice, while biblical inerrancy extends the reliability of the Bible to accurately addressing all matters of history and science.
A commitment to biblical infallibility is a common stance within both mainline and evangelical churches. For example, Billy Graham holds to infallibility but not to inerrancy (http://billygraham.org/statementoffaith.asp).
My personal view is to affirm biblical infallibility, because I believe that the clear purpose of the Bible is to serve as a guide in matters of faith and practice (2 Timothy 3:16-17). I do not believe that the purpose of the Bible is to serve as a history or science textbook. Therefore, in my view, biblical inerrancy is simply unnecessary. In fact, I view the doctrine of biblical inerrancy, spelled out very recently in the 1978 Chicago Statement, as an overreaction to the theological liberalism of the 19th and 20th centuries.
Unfortunately, in attempting to defend the Bible from science and liberalism, those who hold to inerrancy surrender the Bible to a debate in which science is still the reference point. This violates Scripture, as the biblical authors wrote long before the Enlightenment and never intended for their writings to be interpreted in the light of science. As society moves out of the modern period, inerrancy is increasingly becoming a moot point.