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Public Misconceptions on Inflation Could Lead to Economic Instability
The article explores what people think about inflation, its causes, effects, and how to deal with it. A survey found that people believe inflation is mainly caused by government actions and rising production costs due to events like the COVID-19 pandemic. They think inflation leads to more complex household decisions. Republicans blame government policies for inflation and predict negative outcomes, while Democrats worry about increased inequality. Many believe managing inflation doesn't require sacrifices like reducing economic activity or increasing unemployment. People resist tightening monetary policies and even support cutting interest rates to fight inflation. They prefer policies that also benefit society, like reducing government debt in fair ways and helping vulnerable households.