the fed typically aims for 2% inflation because if they aim for 0% inflation, th... | Hacker News

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		spencerchubb 12 months ago \| parent \| context \| favorite \| on: Repair and Remain (2022) the fed typically aims for 2% inflation because if they aim for 0% inflation, the economy may experiencr deflation. if you get stuck in a deflationary spiral, it's very hard to get out also since 2% is the typical target, they have a little room to lower rates and stimulate the economy, such as what happened in covid

Aerbil313 12 months ago [–]

There are alternative theories as to why FED keeps inflation at %2, despite what they say. It's a rabbit hole.

https://wtfhappenedin1971.com/

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