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> Inflation is here to stay. Well sure it is, we aim for some inflation on purpose. If you mean inflation above 2% is here to stay, maybe, but 2% was an arbit
by Dylan16807 1y ago
> Inflation is here to stay.
Well sure it is, we aim for some inflation on purpose.
If you mean inflation above 2% is here to stay, maybe, but 2% was an arbitrary target anyway. It doesn't make much difference whether it's around 2% or hovering between 2% and 3%.
If you think it's going to go much higher I'd like to hear why.
- tobias3 1y agoThis right here. If you don't think they will actually hit the 2% target it means inflation became unanchored. It is mainly about credibility. If they want 3% instead of 2%, they should hit the 2% target first, keep it there for a few years, then increase to 3%.
- Dylan16807 1y agoIf it's within 1% of target that's not "unanchored".
- MegaButts 1y ago3% is 50% more than 2%, so it's nowhere near being within 1% of the target. I'm not trying to be pedantic, but there is an enormous difference between 1% and 50%. https://xkcd.com/985/ https://xkcd.com/985/
- Dylan16807 1y agoIt was clear what I meant so yeah that's pedantry. Precision down to 1% of 2% of prices is impossible. If the target was no change in prices, we wouldn't say inflation is infinity percent off target every month.
- eagerpace 1y agoIt has to go higher. It’s the only way out of the debt issue. Economic growth isn’t enough given the continued spending. If the inflation can happen alongside growth it is easier to sell.
- ViewTrick1002 1y agoWhich leads to all new debt being extremely expensive since the structural problem is not fixed.