0.5%-1%: China's long -term optimal inflation rate
May 13, 2014 21:25 Source: "China Social Sciences" Issue 217 Author: Yin Bo

 

From the perspective of multiple analysis of modern economics,Inflation can generate social costs,Social returns will also generate,Inflation goals bet365 best casino games are not lower the better。Inflation affects socio -economic welfare through many explicit or implicit channels。Some scholars calculate the cost of welfare in inflation in China and propose to keep low inflation that is conducive to improving socio -economic welfare。Traditionally favored zero inflation targets (complete price stability) may not be a intentional target level,The ideal situation is the inflation level of the central bank Bet365 app download anchor a maximized socio -economic welfare。Staring at low inflation targets is conducive to long -term socio -economic welfare,Methods that drive the economy through inflation stimulation are greater than benefits。Research shows that from the short term,About 3%inflation target best,Because higher inflation targets in the short term can increase the output and consumption level;,Low inflation target (0.5%& mdash; 1%) can bet365 Play online games minimize social welfare loss。

(Source: "Economics (Quarterly)" Issue 3 of 2011 Sun 3 Hundred/Pick)

  

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