Money is an IOU. It's not a secret that US central bank policy is to devalue those IOUs at a rate of 2% per year in order to artificially stimulate demand for production.
We can have different opinion on how much inflation is too much. But the universal consensus is that a little bit of inflation is good. It's ok if you think 2% too high. Maybe 1.25% is better.
But we cannot just dispute this basic economic model and thinking that 0 or negative inflation (which would cause the stop of investment), or no consensus(that would just cause more chaos) is better. That's just absurd
The value of the USD wasn’t monotonically inflating away for most of its history, people were mostly fine? Were those periods disastrous in some way?
For decades before that policy, a policy even the Bank of Canada holds, inflation was crazy high. The 80s saw inflation, in Canada, briefly hit over 20%, and double digit inflation was a regular thing.
Everyone decided 2% would be a good rate to aim for, that more control was better, to prevent inflation from flying out of control.
Then some dude comes along and tries to spin it like it's a conspiracy to hurt people.
gloryjulio|2 days ago
But we cannot just dispute this basic economic model and thinking that 0 or negative inflation (which would cause the stop of investment), or no consensus(that would just cause more chaos) is better. That's just absurd
ericd|2 days ago
b112|2 days ago
For decades before that policy, a policy even the Bank of Canada holds, inflation was crazy high. The 80s saw inflation, in Canada, briefly hit over 20%, and double digit inflation was a regular thing.
Everyone decided 2% would be a good rate to aim for, that more control was better, to prevent inflation from flying out of control.
Then some dude comes along and tries to spin it like it's a conspiracy to hurt people.
Please, read a little history. Please.