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
Published at
2023-06-18 23:10:22Event JSON
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"content": "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\n\nDeflation feeds on itself leading to a deflationary spiral, like in the Great depression or Japan's \"lost decade\" \n\nSo 2% seems like a reasonable buffer against the risk of deflation ",
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