> We don't need to use psychological tricks to make people consume more. It’s not a psychological trick, when prices are increasing at a stable and predictable

> We don't need to use psychological tricks to make people consume more. It’s not a psychological trick, when prices are increasing at a stable and predictable rate it’s perfectly rational to spend more instead of saving. Which is good for economic growth. In many way the economy has been inherently deflationary over the past several decades. Due to growing productivity the cost of certain goods and services has been going down consistently. The outcome being that in sectors which this doesn’t happen due to scarcity or other reasons like housing prices have been going up at significantly higher pace. I’m not sure reducing inflation to 0% would helpful for that considering the context. Price growth might slow down at the cost of slower real GDP growth but that’s probably not ideal either.