Why central bank credibility makes fighting inflation less costly

Fighting inflation is easier when people believe the policy will work

If people believe a government or central bank will bring inflation down, they may change their expectations before prices fully respond. Inflation can then fall with less unemployment. If people do not believe the promise, bringing inflation down may cost many more jobs.

Ti piace? C’è un intero feed di cose così. Sostituisci lo scroll vuoto con cose che vale la pena conoscere.
Scarica Hence gratis