In Canada,one of the reasons why the Crow disinflation of the 1990s was more controversial than the Bouey disinflation of the 1980s was that the
A) 1990s reduction of the inflation rate from 4% to 2% was seen as less desirable than the 1980s reduction of the inflation rate from 12% to 4%.
B) Crow disinflation was not successful at reducing inflation.
C) Bouey disinflation was associated with a longer recession than the Crow disinflation.
D) Bouey disinflation was associated with greater cumulative lost output than the Crow disinflation.
E) Bouey disinflation represented a smaller fall in inflation than the Crow disinflation.

Question

Quizplus · Accepted Answer

The Crow disinflation involved reducing inflation from 4% to 2%, which was seen as less impactful compared to the Bouey disinflation that reduced inflation from 12% to 4%, making the latter more significant and less controversial.

In Canada,one of the Reasons Why the Crow Disinflation of the 1990s