Actually, it will never go negative (I hope) because if it goes negative we’re probably in for a massive global recession that will introduce untold suffering.
You think they aim for 2% because that’s what’s good for rich people? 2% is the magic number for the whole economy.
Who taught you that? Remember, economists funded by rich people have obvious biases… And what happens if our salaries and pensions are indexed to the cost of living? Is the reasoning still good?
Populist candidates used to actually argue for higher inflation. See the free silver movement of the late 19th century. With some inflation present, the real value of all debts goes down over time, as long as you make the interest payments.
There are many ways that a government could handle excessive debt. Inflation is one method that is to some degree successful, and also to some degree a complete failure in contemporary America. How many people have student loan payments when they graduated college a couple of decades ago? That’s just shocking. Which is to say, interest rates are one tool, but at the moment they are not sufficient to handle the problems society is facing.
Yeah but unfortunately that’s never going to change. Inflation is the rate of increase and they always want a rate of increase, just at 2%.
It’s never going to go negative because growth for the growth gods!! :(
Line must go up.
Actually, it will never go negative (I hope) because if it goes negative we’re probably in for a massive global recession that will introduce untold suffering.
You think they aim for 2% because that’s what’s good for rich people? 2% is the magic number for the whole economy.
Who taught you that? Remember, economists funded by rich people have obvious biases… And what happens if our salaries and pensions are indexed to the cost of living? Is the reasoning still good?
Just learned I was funded by rich people. Did I miss a paycheck somewhere?
-an actual economist, telling you deflation is bad
Aaaand now we get to the “don’t trust the experts, they’re all liars” phase
Seriously. I didn’t realize President Erdogan had a lemmy accout!
Populist candidates used to actually argue for higher inflation. See the free silver movement of the late 19th century. With some inflation present, the real value of all debts goes down over time, as long as you make the interest payments.
There are many ways that a government could handle excessive debt. Inflation is one method that is to some degree successful, and also to some degree a complete failure in contemporary America. How many people have student loan payments when they graduated college a couple of decades ago? That’s just shocking. Which is to say, interest rates are one tool, but at the moment they are not sufficient to handle the problems society is facing.
lol
There are already alternatives available that do go negative.