The most formal attire for a wedding is white tie and if you receive a wedding invitation in the mail that says white tie is required, you're pretty restricted as to what you should and should not wear.
Figure 11.5 Inflation and Money Growth in the Long Run examines annual growth rates based on observing the money supply and the price level at five-year intervals. The first observation is the annual growth rate for the period starting in January 1959 and ending in January 1964.omparing these two figures, you can see that the relationship between money growth and inflation is much tighter when we examine five-year periods, as in Figure 11.5 Inflation and Money Growth in the Long Run , rather than the monthly changes in Figure 11.4 Inflation and Money Growth in the Short Run .
Doing so results in a rate of inflation in the economy consistent with the Bankâs 2% inflation target. When demand for goods and services in the economy exceeds supply, inflation tends to rise above the Bankâs target rate of 2%. On the other hand, when supply exceeds demand, inflation tends to fall below the Bankâs 2% target.