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Shvoong Home>Social Sciences>Economics>The Objective of Central Banks: Inflation Control Summary

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The Objective of Central Banks: Inflation Control

Book Summary by: AcaDemon    


This paper looks at the issue of inflation control as an objective of central banks. Viewing the British Commonwealth and
Continental European models of 'zero inflation' in contrast with the moderate inflation policy of the US provides a case against zero inflation as a policy objective. A variety of issues that surround inflation; e.g., the inflation/unemployment relationship, etc, will be brought to the fore. In the final analysis, it is clear that efforts to eradicate inflation are misguided and more moderate inflation is preferable in an era where steady economic growth is desirable.
Published: November 12, 2006
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