4 ms·

I haven’t studied Econ too much, but I know differential equations. Is there any economic theory suggesting a stable curve that doesn’t oscillate around the mea

I haven’t studied Econ too much, but I know differential equations. Is there any economic theory suggesting a stable curve that doesn’t oscillate around the mean (but rather tightens up right onto the “mean” whatever that is) is desirable? I get we’re also talking planet scale complexity, and it’s not like that can just be baked in overnight.

barry-cotter 4y ago
The costs of inflation are mostly in surprise, adjustment, monitoring or uncertainty. A stable rate puts all of those at or near zero. High, stable, predictable inflation would be better than usually low but unstable inflation. For a perfectly fine introduction to why inflation is bad see the link below. https://quickonomics.com/the-costs-of-inflation/#:~:text=The%20Costs%20of%20Inflation%201%201.%20Shoeleather%20Costs,Distortions%20...%205%205.%20Confusion%20and%20Inconvenience%20 https://quickonomics.com/the-costs-of-inflation/#:~:text=The...
- deleted 4y ago
  [deleted]