Which economy do you think suffers higher cost of in?ation

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Reference no: EM131238703

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: EM131238703

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