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And most importantly, in a situation where real production efficiency dropped because of covid 19, failing to allow prices to adjust upwards (and real wages to
by BenoitEssiambre 5y ago
And most importantly, in a situation where real production efficiency dropped because of covid 19, failing to allow prices to adjust upwards (and real wages to adjust downwards) to allow the economy to adapt to the situation would put the labor markets in a gridlock and make tons of workers unemployed/underemployed and thus much poorer.
Inflation is what allows people to have jobs and contribute to productivity despite the unprecedented health crisis.