3 ms·
One thing to point out is that we sort of have empirical evidence that this is good. High (hyper) inflation is very bad, and hard to escape. It can also happen
by rich_sasha 4y ago
One thing to point out is that we sort of have empirical evidence that this is good.
High (hyper) inflation is very bad, and hard to escape. It can also happen to developed economies. Even if you discard 2022 energy-induced inflation, look at Turkey.
Deflation - less examples, but Japan comes to mind. Deflation is associated with economic stagnation (others are commenting on causation, I'll leave it be).
There's another argument, as to whether we need GDP growth. Japan doesn't have any, and seems like a pleasant place to live, if you're Japanese at least. I'm not convinced, but the basis is, inflation around 2% is seen as a kind of prerequisite to GDP growth, which is assumed be good and necessary.