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The reason being the newest Federal Put aside provides focused perhaps not zero rising cost of living, but the lowest, steady rates away from rising prices—anywhere between 1987 and 1997, the interest rate away from inflation is actually up to step 3.5%, and ranging from 1997 and you may 2007 it was up to dos%. The newest Government Set aside fasten the cash also have and you may rising cost of living is drastically lower in the new 1980s, and therefore the worth of the newest You.S. money stabilized. This was mostly as a result of the prevalent economic look at in the time one to rising prices and you will genuine economic growth were linked (the fresh Phillips bend), and therefore rising prices is actually considered to be apparently benign.