The Importance of the Federal Reserve’s Inflation Target

Money has three characteristics: medium of exchange, store of value, and unit of account. When money is taught in undergraduate economics classes, these three functions are treated as self- evident, but careful observation suggests that that the first two characteristics are contradictory. If a monetary authority emphasizes the medium of exchange function, then it will [...] The post The Importance of the Federal Reserve’s Inflation Target appeared first on ETF Trends .