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What is the ideal inflation rate?

Topics: Business & FinanceEconomicsBehavioral Sciences, Science


Pamela Mueller

Economic growth doesn't have to cause inflation. If aggregate demand increases at the same rate as aggregate supply, it means the economic growth will be sustainable and non-inflationary. For example, between 1993-2007, economic growth in the UK was averaging around 2.5%, this caused inflation to remain low.

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What is the ideal inflation rate?

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