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If i remember macroeconomics, a little bit of deflation can spiral out of control quickly. It's hard to guarantee it'll never go less than zero if they target e
by jfoutz 9y ago
If i remember macroeconomics, a little bit of deflation can spiral out of control quickly. It's hard to guarantee it'll never go less than zero if they target exactly zero. So they shoot for a little bit over. Also a little bit of inflation encourages people to find things to do with their money other than stuff it in the mattress.