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Money and monetary policy for the twenty-first century.

From: Federal Reserve Bank of St. Louis Review  |  Date: 11/1/2006  |  Author: Jordan, Jerry L.

This essay challenges the conventional wisdom about money and monetary policy. The role of money in fostering prosperity is a function of the quality, as well as the quantity, of money. Inflation always harms the performance of an economy. Deflations caused by productivity and innovation can be virtuous. A definition of a non-inflationary environment is set forth. Rapid real growth and low unemployment cannot cause inflation. There is no trade-off between inflation and employment. ...

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