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Their dual mandate is to maximize employment and manage inflation. Their mission is exactly not to create inflation (or at least, too much of it).
by duped 5y ago
Their dual mandate is to maximize employment and manage inflation. Their mission is exactly not to create inflation (or at least, too much of it).
- mindslight 5y ago"Manage" inflation means to create it. An economy naturally tends towards price deflation, through optimization and technological progress. Business looking for ways to cut costs to compete is intrinsic to a market.
- warkdarrior 5y agoMaybe a competitive economy tends towards deflation. In economies dominated by monopolies/oligopolies, price deflation is not a given.