Who is harmed when inflation is less than anticipated in


1. Explain why a stable 5% inflation rate can be preferable to one that averages 4% but varies between 1% and 7% regularly.

2. Who is harmed when inflation is less than anticipated? In what way are they harmed? Who is harmed when inflation is greater than anticipated? In what way are they harmed?

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Econometrics: Who is harmed when inflation is less than anticipated in
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