Requirements of the zero-inflation goal

Assignment Help Macroeconomics

Reference no: EM13197603

It is often suggested that the Bank of Canada try to reduce the inflation rate to zero. If we assume that velocity is constant, does this zero-inflation goal require that the rate of money growth equal zero?

If yes, explain why. If no, explain what the rate of money growth should equal.

Reference no: EM13197603

Questions Cloud

What are the two possible lengths of the box : A box with a square base has length plus girth of 110 in. (Girth is the distance "around" the box.) What are the two possible lengths of the box, if its volume is 2000 in3?

Calculate the standard deviations of the portfolios : Calculate, the standard deviations of the portfolios over the entire period. Use the standard deviations

Explain the classical and biological theories of crime : discuss the differences between the Classical and Biological theories of crime. Which theory do you agree most with and why? For example, could crime be best explained by applying the Classical theory (free-will) or the Biological theory

Describe why each is continuous or discrete : In your own line of work, give one example of a discrete and one example of a continuous random variable, and describe why each is continuous or discrete.

Requirements of the zero-inflation goal : It is often suggested that the Bank of Canada try to reduce the inflation rate to zero. If we assume that velocity is constant, does this zero-inflation goal require that the rate of money growth equal zero.

Define an organizational level and a societal level : What are the ethical issues that need to be addressed on - an individual level, an organizational level and on a societal levelEvaluate how each significant group

What elements did the new world view possess : What elements did the new world view possess that were to enable it to last until the "Idea of Progress" in the eighteenth century. Is it still part of who we still think we are today Does it still define our place in the cosmos

Find the payment r needed to amortize a loan : Find the payment R needed to amortize a loan of $12,000 at 9.2%/year compounded monthly with 36 monthly installments over a period of 3 yr. (Round your answer to the nearest cent.)

State what restaurants are highly successful in market : What restaurants are highly successful in your market? What factors do you think account for their success? Have any of these restaurants been successful for more than five (5) years?

User Account

All Pages