What Is An "Acceptable" Rate of Inflation?—A Review of the Issues

Michelle R. Garfinkel

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Monetary Policy and Economic Impact Economic Theory and Policy Economic theories and models

Abstract

Michelle R. Garfinkel provides a primer on three issues that must be addressed in any analysis of what constitutes an acceptable rate of inflation. In discussing the first two issues, which concern the possible costs and benefits of inflation, she questions the validity of the idea that any positive inflation could be desirable as a long-run phenomenon.

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1977Asset returns and inflation 1977Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule 1971The Optimum Quantity of Money: and Other Essays 1976Wage indexation: A macroeconomic approach 2017The Optimum Quantity of Money 1987On the Marginal Welfare Cost of Taxation 1973Inflation in the Theory of Public Finance 1978Towards an understanding of the real effects and costs of inflation

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