Did you know there’s no economics research or evidence about that 2% target. It’s just that in the 80’s New Zealand randomly decided that was a good number and choose it. Then New Zealand’s economy did well, so central banks around the world decided to make it their goal.
https://sites.lsa.umich.edu/mje/2023/09/04/why-the-2-inflation-target/#:~:text=The%20story%20of%20the%202,inflation%20target%20(Irwin%202014).
Interesting. I always assumed the 2% goal was trying to mimic the annual increase in the supply of gold.
Please Login to reply.
No replies yet.
