However, “unanticipated” inflation leads to lender losses as the true interest rate might be lower than expected. Thus, Keynesian monetary coverage aims for a gradual fee of inflation. A publication from the Austrian School, The Case Against the Fed, argues that the efforts of the central banks to control inflation have been counterproductive. A central bank could use one other country’s currency either instantly in a foreign money union, or indirectly on a forex board.
