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This is because the brand new Federal Put aside features targeted not zero rising prices, however, a minimal, stable price away from rising prices—ranging from 1987 and you can 1997, the rate out of inflation is actually up to step 3.5%, and you may anywhere between 1997 and you can 2007 it had been just as much as 2%. The new Federal Set-aside tightened the money have and you will inflation try considerably low in the new 1980s, and hence the value of the new You.S. dollar normalized. This is mainly as a result of the prevailing economic consider in the time you to rising prices and you will actual economic growth had been linked (the brand new Phillips bend), thereby inflation try considered apparently safe.

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