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ate? Our third debate is whether zero is the right target for the inflation rate.
PRO: THE CENTRAL BANK SHOULD
A I M F O R Z E R O I N F L AT I O N
Inflation confers no benefit on society,equipment needed for p90x workout, but it imposes several real costs. As we dis-
cussed in Chapter 28,youtube p90x workout, economists have identified six costs of inflation:
N Shoeleather costs associated with reduced money holdings
N Menu costs associated with more frequent adjustment of prices
N Increased variability of relative prices
N Unintended changes in tax liabilities due to nonindexation of the tax code
798 PA R T T H I R T E E N FINAL THOUGHTS
N Confusion and inconvenience resulting from a changing unit of account
N Arbitrary redistributions of wealth associated with dollar-denominated debts
Some economists argue that these costs are small,dior shoes 2011, at least for moderate rates of in-