Within this group researchers tend to share with other economists the emphasis on models employing micro foundations and optimizing behaviour but with a narrower focus on standard Keynesian themes such as price and wage rigidity.
12.
The negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of nominal wage rigidity.
13.
Indeed, in an article published last month in " The Brookings Papers on Economic Activity, " the economists George A . Akerlof, William T . Dickens and George L . Perry suggest that very low inflation may actually create wage rigidity that impairs economic efficiency.
14.
Ultimately, the system could not deal quickly enough with the large balance of payments deficits and surpluses; this was previously attributed to downward wage rigidity brought about by the advent of unionized labor, but is now considered as an inherent fault of the system that arose under the pressures of war and rapid technological change.
