Why the inflation rates world wide became lower in the 2000%26#039;s?
Please give me a few reasons.
Inflation rates in 2000%26#039;s?
I think this started already in the 1990s when central banks became more independent of governments and began adopting formal, public inflation targets with the goal of making the process of monetary policy more effective and transparent.
Central banks try to reach these targets by influencing interest rates which expands or contracts the monetary base.
This only works when exchange rates are kept floating and do not depend on government induced devaluations and pegs.
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