Many central banks have adopted a common policy - an inflation target near 2%. These central banks include the Fed (which calls it a ‘long run goal’), the ECB (which targets inflation ‘below, but close to 2%’) and the central banks of most other advanced economies. A number of economists, such as Blanchard et al. (2010), have suggested a higher inflation target - typically 4%. Yet this idea is anathema to central bankers. According to Ben Bernanke (2010a), the Federal Open Market Committee unanimously opposes an increase in its inflation goal, which ‘would likely entail much greater costs than benefits’. I examine the case for a 4% inflation target in a recent essay (Ball 2013) and reach the opposite conclusions to those of Chairman Bernanke: A 4% target would ease the constraints on monetary policy arising from the zero bound on interest rates, with the result that economic downturns would be less severe. This important benefit would come at minimal cost, because 4% inflation does not harm an economy significantly.
Kasinungalingan bumaba daw halos tumataas pa nga sa grabe taas ng mga bilihin lalo ng pagkain at peso bagsak ng halaga dahil mataas ang palitan sa dolyar.
Ay nku ang Mahal ng mabili
Many central banks have adopted a common policy - an inflation target near 2%. These central banks include the Fed (which calls it a ‘long run goal’), the ECB (which targets inflation ‘below, but close to 2%’) and the central banks of most other advanced economies.
A number of economists, such as Blanchard et al. (2010), have suggested a higher inflation target - typically 4%. Yet this idea is anathema to central bankers. According to Ben Bernanke (2010a), the Federal Open Market Committee unanimously opposes an increase in its inflation goal, which ‘would likely entail much greater costs than benefits’.
I examine the case for a 4% inflation target in a recent essay (Ball 2013) and reach the opposite conclusions to those of Chairman Bernanke:
A 4% target would ease the constraints on monetary policy arising from the zero bound on interest rates, with the result that economic downturns would be less severe.
This important benefit would come at minimal cost, because 4% inflation does not harm an economy significantly.
Kasinungalingan bumaba daw halos tumataas pa nga sa grabe taas ng mga bilihin lalo ng pagkain at peso bagsak ng halaga dahil mataas ang palitan sa dolyar.
2 years ago pa pala ito. Ang ngayon 2024 ang ibalita nyo. Nakakahiya ano.
Sus balita langyan mababa ponta kayo Ng palingki Ng Makita nyo ano totoo