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Explain the different behavior of inflation in given periods

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Reference no: EM131737450

Question: The dollar declined sharply in 1973-4 and 1977-8, and those declines were accompanied by sharply higher inflation. However, when the dollar declined even more sharply in 1986-8, the rate of inflation did not rise at all. What explains the different behavior of inflation in those two periods?

Reference no: EM131737450

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