Governments create inflation by generating (aka 'printing', but nowadays it's ofc all digital) money. The more money they print, the more income is generated to

Governments create inflation by generating (aka 'printing', but nowadays it's ofc all digital) money. The more money they print, the more income is generated to finance government spending. > Western governments all seem to target 2% annual inflation 2% is seen as a sweet spot: it still allows governments to print extra money but the inflation rate is not so high that it would lead to an inflation spiral that would run out of control.