cover image: Inflation targeting: How the Federal Reserve abandoned ‘honest money’ for a perpetual inflation tax

20.500.12592/q8r49n

Inflation targeting: How the Federal Reserve abandoned ‘honest money’ for a perpetual inflation tax

25 Oct 2021

A new working paper reviews the argument that a 3 percent inflation target would limit the risk of deflation and create large transitory reductions in unemployment and cumulative gains in GDP. The paper also provides estimates of the additional tax revenue generated by increasing the FOMC's inflation target from 2 to 3 percent.
economics inflation gross domestic product (gdp) federal reserve monetary economics federal open market committee

Authors

Paul H. Kupiec

Published in
United States of America

Related Topics

All