Consider two possible inflation scenarios. In one, the inflation rate is 100% per year, but it has

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Consider two possible inflation scenarios. In one, the inflation 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 inflation 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 inflation, and why?
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Macroeconomics

ISBN: 978-0393923902

3rd edition

Authors: Charles I. Jones

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