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
There is nothing magic about the 2% target. The choice of exactly 2% instead of a slightly higher number like 3% is somewhat arbitrary but grounded in a trade-off between higher inflation costs and the benefits of greater flexibility and buffer against deflation. 2% being the target inflation rate emerged in the 1990s, becoming widely adopted among central banks, including the Federal Reserve, which formally adopted this target in 2012.
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