Critics of targeting a zero inflation rate believe that achieving zero inflation is almost impossible and the costs are too high.

Question

Quizplus · Accepted Answer

Critics argue that achieving zero inflation is difficult as there are multiple factors such as supply and demand, international events, and natural disasters that affect the economy. Additionally, the costs of implementing policies to try and achieve zero inflation, such as increased unemployment and reduced economic growth, may outweigh the benefits.

Critics of Targeting a Zero Inflation Rate Believe That Achieving