Keynesian economists believe inflation can occur independently of monetary conditions.
If though, for a minute I follow the monetarists line, it has been well proven that targetting that relationship has been a failure and as I said, Milton Friedman himself agreed only last year.
Do too keep in mind there is a good reason central banks set specific inflation goals rather than zero, offical price indicies have a long history of overstating inflation and everyone prefers a touch of inflation to deflation.
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Good friends, good books and a sleepy conscience: this is the ideal life.
- Twain
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