Why is it so painful to get rid of inflation

Reference no: EM131832866

Question: 1. If everyone expects inflation to rise by 10% over the next few years, where, according to the Fisher effect, will the biggest effect be: on nominal or real interest rates?

2. Why is it so painful to get rid of inflation? Why can't the government just stop printing so much money?

Reference no: EM131832866

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