All central banks manage the supply of money and credit in their
countries, increasing and decreasing them as needed to provide what
economies need to keep growing. The way central banks typically
handle that job involves short-term interest rates. But when
inflation is low, central banks can't use their usual methods to
get money and credit into an economy that needs it. Several essays
in this volume describe the work of economists who have
investigated problems that central banks might have when inflation
gets low. Other essays investigate related questions such as
whether an economy suffers when it moves from high inflation to low
inflation, what the costs of inflation are to economic welfare, and
whether a little bit of inflation can actually be good for economic
growth.
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