Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/101346
Authors: 
Ball, Laurence M.
Year of Publication: 
2013
Series/Report no.: 
Working Papers, The Johns Hopkins University, Department of Economics 607
Abstract: 
Many central banks target an inflation rate near two percent. This essay argues that policymakers would do better to target four percent inflation. A four percent target would ease the constraints on monetary policy arising from the zero bound on interest rates, with the result that economic downturns would be less severe. This benefit would come at minimal cost, because four percent inflation does not harm an economy significantly.
Document Type: 
Working Paper

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