Why to insist on 2 per cent inflation target
MaxwellBert
Jun 25
China Financial Forty-Four Forum of Opinion Leaders Looking at the history of inflation targets, the major banks have long set inflation targets at 2 per cent, and the choice of 2 per cent is initially incidental but profoundly justified. First, the Bank’s pursuit of price stability can be seen as a continuation and improvement of the capital. Second, price stability does not mean that inflation must be zero. Documentation studies show that, with a qualitative adjustment, 1 per cent of inflat...
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