The most plausible and controversial argument is that moderate to high inflation is popular among consumers. A low inflation rate may reduce the cost of living and real estate prices to many consumers but a very low inflation also creates a debt burden on the borrowers as it becomes very costly for them to pay back their debts. A moderate inflation helps reduce the burden of debt upon many consumers while increasing the cost of living marginally. Therefore, neither too high nor too low inflation is preferred by consumers.
After a prolonged period of high inflation the government of Oceania decides to set a target...
After a prolonged period of high inflation the government of Oceania decides to set a target of 0% inflation going forward. As the new assistant economic minister, you are tasked with critiquing this policy. Which criticism of the 0% inflation target is plausible yet controversial among economists? Too little inflation interferes with the downward adjustment of real wages. 0 A 0% inflation target could lead to deflation. O Moderate to high inflation is popular among consumers