Given that inflation erodes the value of money, should the Federal Reserve pursue a goal of deflation?
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Given that inflation erodes the value of money, should the Federal Reserve pursue a goal of deflation? Would deflation create some of the same problems as inflation in terms of the information communicated by price changes and the arbitrary redistribution of income? Briefly explain.
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Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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