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This right here. If you don't think they will actually hit the 2% target it means inflation became unanchored. It is mainly about credibility. If they want 3%
by tobias3 1y ago
This right here. If you don't think they will actually hit the 2% target it means inflation became unanchored.
It is mainly about credibility.
If they want 3% instead of 2%, they should hit the 2% target first, keep it there for a few years, then increase to 3%.
- Dylan16807 1y agoIf it's within 1% of target that's not "unanchored".
- MegaButts 1y ago3% is 50% more than 2%, so it's nowhere near being within 1% of the target. I'm not trying to be pedantic, but there is an enormous difference between 1% and 50%. https://xkcd.com/985/ https://xkcd.com/985/
- Dylan16807 1y agoIt was clear what I meant so yeah that's pedantry. Precision down to 1% of 2% of prices is impossible. If the target was no change in prices, we wouldn't say inflation is infinity percent off target every month.