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Topic: Business
Number of pages / Number of words: 3 / 692
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of reducing “i” is not effective in pressure of deflation.

Zero inflation (prices are completely stable): Advantage? 1) avoid costs of inflation. People are wasting time and energy to beat inflation. Don’t have time to invest. Purchasing power and productivity drops. 2) change in expectation. If people have faith that the Fed will keep inflation at “0” level; wage increase will not be a point of new labor contract...


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People are wasting time and energy to beat inflation. Don’t have time to invest. Purchasing power and productivity drops. 2) change in expectation. If people have faith that the Fed will keep inflation at “0” level; wage increase will not be a point of new labor contract. 3) permanent benefits of “0” inflation...


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