Zero Inflation: Ending Cash Hassles and Tax Hikes, Boosting Economic Stability
The main goal of the article is to show that achieving price stability in the economy has two key benefits: reducing inflation to zero and eliminating uncertainty about future price changes. This helps prevent disruptions in the economy and financial markets. The researchers use economic models to demonstrate how a stable price level can lead to less need for cash management and prevent unexpected tax increases. They also show how uncertainty about future prices can harm savings and borrowing decisions. Overall, maintaining price stability can lead to a more stable and predictable economy.