Is there some sort of mathematical reason behind this goal? Does 3% have some sort of long-term effects such that it becomes uncontrollable or something?
It seems like, inflation or not, places are just as busy (restaurants, Target/Wal-Mart, Costco, etc…).
In: Economics
2% is considered by a lot of economists to be enough that people keep investing, but not so high that prices spiral out of control. Any lower than that and people end up holding on to their cash, rather than investing in companies, banks, etc. There isn’t an equation that says 2% is perfect or optimal.
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