Just How Helpful is Inflation?

According to one widely adopted class of economic models, raising the inflation rate would be one of the most helpful things that could happen to economies in the situation currently faced by Japan and the U.S. Here I describe some new research relevant for testing that theory. With the short-term interest rate stuck near zero [...] View the full post at: Just How Helpful is Inflation? Related posts: Actual Inflation and Inflation Expectations Fed Hoenig’s View on Interest Rates and Inflation High Anxiety: Interest and Inflation Rates