Economics, Econometrics and Finance
4 years ago

Stabilizing core inflation minimizes costs of relative price fluctuations.

RePEc: Research Papers in Economics
Relative Prices and Inflation Stabilisation
Kosuke Aoki

Paper Summary

Sluggish price adjustments can make inflation costly by messing up different prices. Just stabilizing overall inflation doesn't always fix this, but focusing on a specific core inflation can help reduce the costs of price changes and inflation.

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