characterized by rapidly increasing cost inflation. Healthcare today shows clear signs of being a "stagnant personal service" with … poor productivity levels compared to other services such as telecommunication. As a result, healthcare inflation is far … higher than the standard inflation rate, creating high real costs that push up the expenditure for healthcare. Consequently …

stronger bargaining position when they try to prevent a cut in money wages. If inflation is so low that some money wages have … to be cut, workers stronger bargaining position requires higher unemployment in equilibrium. However, inflation is more … stable when money wage rigidity binds, providing an incentive for monetary policy makers to choose a low target for inflation …