Explain how new inflationary environment would affect demand


Suppoe a given country experienced low and stable inflation rates for quite some time, but then inflation picked up and over the pst decade has been relative high and quite unpredictable. Explain how this new inflationary environment would affect the demand for money according to portfolio theories of money demand, What would happen if the government decide to issue inflation protected securities.

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Microeconomics: Explain how new inflationary environment would affect demand
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