Zero Inflation: Transition Costs And Shoe Leather Benefits
The idea that the monetary authority cannot achieve price stability except at the cost of a recession is the most common and convincing argument against price stability. This paper presents calculations showing that the resource costs of a recession that might result from eliminating a 4 percent inflation are approximately equal to the "shoe leather" costs incurred when inflation is stable at 4 percent. Copyright 1993 Western Economic Association International.
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Volume (Year): 11 (1993)
Issue (Month): 1 (01)
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