Upward Inflationary Drift in a FlexNIT Regime
A key characteristic of a FlexNIT economy is its susceptibility to a persistent upward trend in the inflation rate. This vulnerability arises from the absence of a strong institutional constraint, such as an independent central bank with a credible and stable inflation target, which would otherwise provide discipline to monetary policy.
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Introduction to Macroeconomics Course
Ch.7 Macroeconomic policy in the global economy - The Economy 2.0 Macroeconomics @ CORE Econ
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Learn After
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