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the fed typically aims for 2% inflation because if they aim for 0% inflation, the economy may experiencr deflation. if you get stuck in a deflationary spiral, i
by spencerchubb 2y ago
the fed typically aims for 2% inflation because if they aim for 0% inflation, the economy may experiencr deflation. if you get stuck in a deflationary spiral, it's very hard to get out
also since 2% is the typical target, they have a little room to lower rates and stimulate the economy, such as what happened in covid
- Aerbil313 2y agoThere are alternative theories as to why FED keeps inflation at %2, despite what they say. It's a rabbit hole. https://wtfhappenedin1971.com/ https://wtfhappenedin1971.com/