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29 August, 01:46

It is sometimes suggested that the federal reserve should try to achieve zero inflation. assume that velocity is constant. what must the rate of money growth equal in order to achieve this zero-inflation goal? 0%

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  1. 29 August, 04:53
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    The rate of money growth equal in order to achieve this zero-inflation goal should be if there will be an increasing process of the inflation rate with the nominal rate on the equal number of inflation number increases. And it will have no impact to the true rate.
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