Inflation at moderate rates but persisting over long periods. This is the normal state of affairs in many countries. If inflation is rapid, it inflicts serious losses and builds up strong political support for measures to control it. Once inflation falls to low levels, other problems such as maintaining full employment claim the attention of the authorities, and measures to reduce inflation further command little political support. It can also be argued that the danger of the liquidity trap during recessions makes low rather than zero inflation the best target for monetary management.

• natural monopoly
• natural rate of interest
• natural rate of unemployment
• natural resources
• natural wastage
• NBER
• near money
• necessary and sufficient conditions
• necessity
• NEDC
• negative
• negative equity
• negative income tax
• neoclassical economics
• net
• Net Book Agreement
• net capital formation
• net domestic product
• net economic welfare
• net exports
• net foreign assets
• net investment
• net national product
• net present value
• net profit