Economists all agree that

Question

Quizplus · Accepted Answer

Economists generally agree that high inflation is costly due to the significant economic distortions it creates, such as reducing price signals and increasing the uncertainty of future prices. However, there is debate about the costs of moderate inflation, with some arguing that it can help grease the wheels of the economy by reducing the real value of debt and allowing for more flexible wages. Thus, while there is agreement that high inflation is costly, there is disagreement about the costs of moderate inflation.

Economists All Agree That