Now You Know!

The Federal Reserve's "Inflation Target Of 2%" actually came out as a result of a New Zealand finance minister's casual remark during a TV interview leading to the Federal Reserve's establishment of this target.😂😹🤣

New Zealand's approach to inflation targeting became a model for other central banks, including the U.S. Federal Reserve, which formally adopted the 2% target in 2012 after years of internal discussion.😂😹🤣

Finance Minister Roger Douglas mentioned a target of 0-1% during a TV interview, which led to discussions on setting a formal target.

Implementation:

When Don Brash became the governor of the Reserve Bank of New Zealand in 1988, he and his team estimated an upward bias in inflation measures.

They rounded their maximum target to 2%, which became widely adopted by other central banks, including the Fed.

Global Adoption:

Following New Zealand, Canada and several European countries adopted the 2% target, establishing it as a standard among developed nations.

This historical context highlights how the 2% inflation target became a cornerstone of modern monetary policy, influencing central banks worldwide.

Remainder Of The Article: Lyn Alden On Bitcoin, Inflation And The Potential Coming Energy Shock: https://dpl-surveillance-equipment.com/bitcoin-and-crypto-currency/lyn-alden-on-bitcoin-inflation-and-the-potential-coming-energy-shock/