4 ms·
Yeah - I think the ideal agreed was about 2%, but maybe that was just the monetarists who prefered it around 2%, I am not sure what other schools propose, maybe
by zby 6y ago
Yeah - I think the ideal agreed was about 2%, but maybe that was just the monetarists who prefered it around 2%, I am not sure what other schools propose, maybe 4% is Keynesian? But the point is that what everyone tried to have inflation in a controlled way. The idea was that central banks can do that, but apparently that did not work well enough. Now we are back to letting governments control inflation - and the historical precedent is that this easily leads to hiperinflation.
- Proven 6y agoGovernment-created (this includes central bank-created) inflation is a form of theft from savers and laborers. Ideally there'd be none from that source. Theft executed in a controlled way shouldn't be viewed as ideal. As per the interview there is no doubt whatsoever what the intent is: create inflation higher than yield on government debt (which presumably includes the rate of inflation, perceived risk and other factors) and rob the bondholders (also known as savers, which includes workers with retirement plans or other savings). Before we muse on what inflation rates may be optimal, perhaps we should wonder about the morality and legality of institutionalized theft at scale. If I stole 2% of your savings you'd probably want me in jail. The government and central bank aims to steal 2% every year and statists wonder if 4% or 1% may be better.