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Correct me if I'm wrong, but I'm pretty sure most economists theoretically prefer an inflation rate of 0. However, they see inflation as less bad than deflation
by rthomas6 13y ago
Correct me if I'm wrong, but I'm pretty sure most economists theoretically prefer an inflation rate of 0. However, they see inflation as less bad than deflation, so they err on the side of caution by generating a safety margin of inflation.
- aggronn 13y agohttp://en.wikipedia.org/wiki/Phillips_curve http://en.wikipedia.org/wiki/Phillips_curve this is an old theory and has been refined over time, but its still the basic model taught in economics courses.