about the appropriate instrument to use to control inflation. Monetarists emphasize a low and steady growth rate of the money supply, while Keynesians emphasize controlling aggregate demand, by reducing demand during economic expansions and increasing demand during recessions to keep inflation stable. Control of aggregate demand can be achieved by using either monetary policy or fiscal policy (increasing taxation or reducing government spending to reduce demand). Ever since the 1980s, most countries have primarily relied on monetary policy to control inflation. When inflation beyond an acceptable level takes place, the country's central bank increases the interest rate, which will tend to slow down economic growth and inflation. Some central banks have a symmetrical inflation target, while others only react when inflation rises above a certain threshold. In the 21st century, most economists favor a low and steady rate of inflation. In most countries, central banks or other monetary authorities are tasked with keeping interest rates and prices stable, and inflation near a target rate. These inflation targets may be publicly disclosed or not. In most OECD countries, the inflation target is usually about 2% to 3% (in developing countries like Armenia, the inflation target is higher, at around 4%). Central banks target a low inflation rate because they believe that high inflation is economically costly because it would create uncertainty about differences in relative prices and about the inflation rate itself. A low positive inflation rate is targeted rather than a zero or negative one because the latter could cause or worsen recessions; low (as opposed to zero or negative) inflation reduces the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduces the risk that a liquidity trap prevents monetary policy from stabilizing the economy. Other methods Fixed exchange rates Under a fixed exchange rate currency regime, a country's currency is tied in value to another single currency or to a basket of other currencies (or sometimes to another measure of value, such as gold). A fixed exchange rate is usually used to stabilize the value of a currency, vis-a-vis the currency it is pegged to. It can also be used as a means to control inflation. However, as the value of the reference currency rises and falls, so does the currency pegged to it. This essentially means that the inflation rate in the fixed exchange rate country is determined by