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eob / Éamonn
npub1aaq…ykwv
2023-06-18 23:10:22
in reply to nevent1q…6gff

eob on Nostr: One good reason for aiming for 2% is if the Fed aimed for zero percent there is a ...

One good reason for aiming for 2% is if the Fed aimed for zero percent there is a danger we would end up with negative inflation (deflation) and that is a very bad place for an economy to be

Deflation feeds on itself leading to a deflationary spiral, like in the Great depression or Japan's "lost decade"

So 2% seems like a reasonable buffer against the risk of deflation
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