Comment by qgin
17 days ago
What if you target 0% inflation and instead tax assets at 2%? Same effect as “good inflation”, encouraging investment rather than hoarding, but it funds government rather than just devaluing the currency?
17 days ago
What if you target 0% inflation and instead tax assets at 2%? Same effect as “good inflation”, encouraging investment rather than hoarding, but it funds government rather than just devaluing the currency?
Workers have an irrational dislike of their salary or wages ever going down. The main benefit to 2% per year inflation is giving employers a way to reduce real wages 2% per year during a downturn without the worker noticing.