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page 498 the benefits of reducing inflation to zero include 1 reducing shoeleather costs 2 reducing menu costs 3 reducing the variability of relative prices 4 preventing unintended changes in tax liabilities due to nonindexation of the tax code 5 eliminating the confusion and inconvenience resulting from a changing unit of account and 6 preventing arbitraty redistribution of wealth associated with dollar- denominated debts. these benefits are all permanent. the costs of reducing inflation to zero and the high unemployment and low output needed to reduce inflation. according to the natural rate hypothesis, these costs are temporary
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