Which of the following is NOT a reason why the Crow disinflation of the 1990s was more controversial than the Bouey disinflation of the 1980s?
A) The 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) The Crow disinflation was not successful at reducing inflation.
C) The Crow disinflation was associated with a longer recession than the Bouey disinflation.
D) The Crow disinflation was associated with greater cumulative lost output than the Bouey disinflation.
E) The Bouey disinflation represented a smaller fall in inflation than the Crow disinflation.

Question

Quizplus · Accepted Answer

The Bouey disinflation of the 1980s was more controversial than the Crow disinflation of the 1990s for several reasons, including the fact that the reduction of inflation during the Bouey period was less drastic and less painful than during the Crow period. However, one reason that is not true is that the Crow disinflation was not successful at reducing inflation. In fact, the Crow disinflation was successful in reducing inflation from 4% to 2%, but it was criticized for the costs of the disinflation in terms of lost output and recession.

Which of the Following Is NOT a Reason Why the Crow