4 ms·
To have a larger amount of money in circulation because of population and wealth growth.
by belltaco 4y ago
To have a larger amount of money in circulation because of population and wealth growth.
- Aachen 4y agoYou can have ten trillion per capita in circulation and still not have population and wealth growth. The absolute number has no meaning, or hyperinflation would be desirable. This is not the reason.
- datadata 4y agoThe 2% inflation target is for price inflation (the cost of a basket of goods), not monetary inflation (the amount of money). Only monetary inflation is needed to support a growing population, so this does not explain having a target of price inflation.