Government and economists say, that ideal inflation is about 2%.. why is that? Why is 2% of my savings disappearing every year good? (In ideal case)
In: Economics
The economy and the country needs to grow. More people = more money, and the side effect is that the money ends up being worth a little less.
The alternative is stagnation or deflation, both of which are bad because it means people spend less, which means businesses can’t grow, which means they can’t hire, which means job losses and recessions.
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