The placebo effect of inflation refers to O inability of monetary policy to have any real effect on the economy. O ability of monetary policy makers to reveal the impact of inflation on interest rates and manipulate the economy towards potential. decreased value of assets that creates the illusion that society is poorer which encourages increases in investment and growth. x O increased value of assets that creates the illusion that society is richer which encourages more investment and growth. The placebo effect is a tool of unconventional monetary policy, because this type of policy emphasizes the benefits of increasing inflation. conventional monetary policy, because this type of policy emphasizes the benefits of increasing inflation. conventional monetary policy, because this type of policy emphasizes the benefits of experiencing some low levels of inflation. unconventional monetary policy, because this type of policy emphasizes the benefits of experiencing some low levels of inflation