According to Oatley,the reason inflation fell in the 1980s in Europe was because
A) the fall in energy prices lowered production costs dramatically.
B) unions and businesses were convinced that the government would devalue their currencies.
C) the EMS took away the control of monetary policy away from government.
D) the ECB was one of the world's most independent central banks.
E) European governments accepted higher unemployment that tight monetary policies generated.

Question

Quizplus · Accepted Answer

Oatley argues that European governments accepted higher unemployment that tight monetary policies generated, which led to a decrease in inflation in the 1980s.

According to Oatley,the Reason Inflation Fell in the 1980s in Europe