For what it's worth, here is the Bank of Canada's explanation for why they target a 2% inflation rate as part of a broader goal of promoting price stability: h

For what it's worth, here is the Bank of Canada's explanation for why they target a 2% inflation rate as part of a broader goal of promoting price stability: http://www.bankofcanada.ca/wp-content/uploads/2010/11/why_canada_inflation_target.pdf http://www.bankofcanada.ca/wp-content/uploads/2010/11/why_ca...