If inflation is bad, and deflation is worse, then what is the best possible scenario for a country(that suffers from inflation)’s economy?

Question

If inflation is bad, and deflation is worse, then what is the best possible scenario for a country(that suffers from inflation)’s economy?

In: 8

Answer 1

Reining inflation in, back to a healthy low level. High inflation is bad, but low inflation is strongly preferable to deflation, and overall very tolerable. The long-term goal is often around 2% annual inflation.

Curing bad cycles of inflation in the 1970s in the US required cranking up interest rates to the point of causing a sharp recession.