Monday, 6 December 2010

Inflation targeting or price-level targeting?

That is becoming the question.

Here is a very good article on the subject:

Fed Avoiding Deflation May Depend on Canadian CPI Experiments

I will explain the effect of our traditional, globally implemented and IFRS authorized Historical Cost Accounting model, or, more specifically, the stable measuring unit assumption, re-inforcing deflation (making it more difficult to reverse back into inflation) in an update on this post.
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