Does inflation uncertainty increase with inflation?
One of the most important costs of inflation is the uncertainty it creates about future inflation. This uncertainty clouds the decisionmaking of consumers and businesses and reduces economic well-being. Without this uncertainty, consumers and businesses could better plan for the future. According to many analysts, uncertainty about future inflation rises as inflation rises. As a result, these analysts argue that the Federal Reserve could reduce inflation uncertainty by reducing inflation. Other analysts argue that high inflation creates no more uncertainty than low inflation, as long as inflation remains stable. As a result, these analysts argue that high inflation does not necessarily interfere with decisionmaking or reduce economic well-being.> Golob reviews the results of previous research and presents new empirical evidence finding that inflation uncertainty rises with inflation.
Volume (Year): (1994)
Issue (Month): Q III ()
|Contact details of provider:|| Postal: One Memorial Drive, Kansas City, MO 64198|
Phone: (816) 881-2254
Web page: http://www.kansascityfed.org
More information through EDIRC
|Order Information:|| Email: |
When requesting a correction, please mention this item's handle: RePEc:fip:fedker:y:1994:i:qiii:p:27-38:n:v.79no.3. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (LDayrit)
If references are entirely missing, you can add them using this form.