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It is because the new Government Set aside has focused not zero inflation, but a minimal, secure rates away from rising cost of living—anywhere between 1987 and 1997, the rate away from rising prices is just as much as step three.5%, and you will anywhere between 1997 and you may 2007 it actually was as much as dos%. The fresh Federal Set-aside tightened the money also have and you can rising prices try drastically reduced in the fresh mid-eighties, so because of this the worth of the newest U.S. dollars stabilized. This is mainly as a result of the prevalent monetary consider during the go out one to inflation and actual monetary growth were linked (the newest Phillips bend), and therefore rising cost of living is actually considered to be relatively safe.