Emeritus Prof Christopher May on Nostr: Is the widely adopted 2% for #inflation a well-researched & analysed idea.... or is ...
Is the widely adopted 2% for #inflation a well-researched & analysed idea.... or is it just an arbitrary level soured by an off the cuff remark on TV.
So we might ask, where is the empirical verification that this is the 'right' level.... indeed, as Louis-Philippe Rochon suggests, perhaps we need to dispense with inflation targeting altogether.
If sado-monetarism (as practiced by the BoE) is the result then the sooner we see the back of such targeting, the better!
https://www.theguardian.com/commentisfree/2024/feb/01/the-damning-truth-about-the-uks-2-inflation-target-its-completely-made-up
So we might ask, where is the empirical verification that this is the 'right' level.... indeed, as Louis-Philippe Rochon suggests, perhaps we need to dispense with inflation targeting altogether.
If sado-monetarism (as practiced by the BoE) is the result then the sooner we see the back of such targeting, the better!
https://www.theguardian.com/commentisfree/2024/feb/01/the-damning-truth-about-the-uks-2-inflation-target-its-completely-made-up