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
Because they don’t want you to just be saving cash and you don’t either, because it’s better for both of you to have that invested in something that’s generating money or advancing us technologically.
Without inflation (or negative inflation) people don’t invest, which means there’s no capital to do capitalism things, which means there’s no economy in the first place.
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