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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: neolib who wrote (480177)	9/27/2021 11:39:51 PM
From: Sam	Respond to of 541141

Here is an essay on why the Fed targets 2%. qz.com Not very scientific, lol. But I think having a target like that helps central banks focus on keeping inflation low and gives them important tools to use to help the economy. On the other hand, Milton Friedman once suggested that the Fed be abolished in its current form and in its place, just have a computer expand the money supply by 2% every year. His presumption was that the extra cash would lead to steady 2% growth on average. In years when growth was too fast, 2% would slow down the economy. In recessions, it would help to speed it up.