3 ms·
The target inflation of 2% was established because the measurement error of the value is also about 2%. Hence if you want to avoid deflation, but at the same ti
by sprash 10y ago
The target inflation of 2% was established because the measurement error of the value is also about 2%. Hence if you want to avoid deflation, but at the same time minimize inflation your target should be 2%.
- kristianp 10y agoThat's interesting. But that also means that the central bankers think a 0% rate of inflation is acceptable, when non-zero inflation is needed to stimulate growth through lending.