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# Answer to Question #49096 in Macroeconomics for chuabeeyin

Question #49096
Why are some economists against target of zero inflation?
Zero inflation benefits are relatively low comparingwith a moderate rise in prices, while the costs to achieve zero inflation are&nbsp;significant. The decline in inflation by 1% would require reducing the amount&nbsp;of annual production by 5%. Reducing inflation from 4% to zero will cause a&nbsp;reduction of GDP by 20%. With a US GDP of about $7 trillion costs are&nbsp;expressed in$ 1.4 trillion, or \$ 5,000 per capita. Moreover reducing inflation&nbsp;is almost always accompanied by an increase in unemployment and a decrease in production&nbsp;volumes.

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