New Evidence on the Output Cost of Fighting Inflation
نویسنده
چکیده
T he Federal Reserve has made significant progress toward price stability over the last two decades. The annual inflation rate has declined from 13 percent in the early 1980s to roughly 2 percent today. The current environment of low and stable inflation has fostered superior economic performance. Lower inflation has led to lower interest rates, which in turn have helped spur investment, foster more affordable housing, and, arguably, support the current solid expansion and strength of the stock market.
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