3 ms·
My intuition for this is to view the economy as a large number of interconnected gears driven by an input shaft. When the input is neutral (no inflation), the
by foobarian 3y ago
My intuition for this is to view the economy as a large number of interconnected gears driven by an input shaft. When the input is neutral (no inflation), the gears are slack and kind of spin back and forth with occasional whiplash. But with some token input spin (small inflation), the slack vanishes and all gears spin smoothly.