The costs of in?ation, The costs of in?ation: Consider two

The costs of in?ation

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The costs of in?ation: Consider two possible in?ation scenarios. In one, the in?ation rate is 100% per year, but it has been at this level for three decades and the central bank says it will keep it there forever. In the other, the in?ation rate was 3% for two decades but just this past year rose to 10%. Over the next 5 years, which economy do you think suffers a higher cost of in?ation, and why?

Reference no: EM131196059

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The costs of in?ation : The costs of in?ation: Consider two possible in?ation scenarios. In one, the in?ation rate is 100% per year, but it has been at this level for three decades and the central bank says it will keep it there forever. In the other, the in?ation rate was ..

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