A Zero Inflation Target

A zero inflation target

A) eliminates the short-run unemployment-inflation tradeoff
B) is almost impossible to achieve since it would require an extremely high natural rate of unemployment
C) can only be achieved if wage indexation is implemented nationwide
D) will have much lower costs than an explicit target of achieving a 4% long-term inflation rate
E) may not be as good as a positive inflation target, because it makes it more difficult to achieve full employment

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