... advocatesof'zeroinflation'do in fact have a 'rollback'policy in mind.ThusWilliamT.Gavin(1990,pp.43-4) defines'zeroinflation' asbeing'equivalentto ... a resultofsomechange in thenominalquantityorvelocityofmoney,leadingto a change in theoveralldemandforfinalgoodsandseIVices,thatis, in aggregatespendingor'nominalincome'. A centralbankmight, in principleatleast,managethestockofmoneyso ... astopreventsuchchanges in nominalincome,therebykeepingthepricelevelconstant.Byassumption,consumerpreferencesandtechnologyarenot changing, sothattheonlyinformationconveyed byanypricelevelmovementisinformationconcerningthecentralbank'sfailuretomaintain a stablevalueofnominalspending.Ananalogy mayhelpclarifytheexample.ImaginethatyouarelisteningtooneofBach'sfuguesfororgan'ontheradio.23Thesignal...