The relationship between price stability and economic growth has gained importance as a fundamental reason for the monetary policies based on the inflation targeting regime. Nevertheless, there is no theoretical evidence as to which inflation level is considered to be high or low for economic...

Deflation is currently considered as one of the most important threats for macroeconomic dynamics and, thus, it is argued that it should be avoided by all available means. We challenge this view because empirically it cannot be verified that deflation periods necessarily go hand in hand with...

The relationship between price stability and economic growth has gained importance as a fundamental reason for the monetary policies based on the inflation targeting regime. Nevertheless, there is no theoretical evidence as to which inflation level is considered to be high or low for economic...