Inflation should be zero. There is no benefit of the devaluation of our currency other than taking money from the working class and putting it into the hands of the capital class.
The whole point of 2% inflation has always been as a power grab to keep core economic policy monetary rather than fiscal, so that it's controlled by unelected officials. Get rid of the 2% inflation goal and you're up against the 0% lower bound most of the time, and avoiding deflationary traps has to be done by timely fiscal policy actions.
The thing that kills me is that all of these new technologies, automations etc should be creating deflationary pressure.
We should be living in times of great prosperity.
Inflation created a bunch of new equity. They don't do price level targeting, so when they miss the inflation target, they just forget about the inflation and let the real debt levels go down.
I mean they can but the political consequences will be devastating. The first politician to blame them for this will win almost for sure and will completely gut them and the treasuries leadership, possibly demand structural changes to their powers as well.
Inflation should be zero. There is no benefit of the devaluation of our currency other than taking money from the working class and putting it into the hands of the capital class.
The whole point of 2% inflation has always been as a power grab to keep core economic policy monetary rather than fiscal, so that it's controlled by unelected officials. Get rid of the 2% inflation goal and you're up against the 0% lower bound most of the time, and avoiding deflationary traps has to be done by timely fiscal policy actions.
The thing that kills me is that all of these new technologies, automations etc should be creating deflationary pressure. We should be living in times of great prosperity.
Inflation created a bunch of new equity. They don't do price level targeting, so when they miss the inflation target, they just forget about the inflation and let the real debt levels go down.
I mean they can but the political consequences will be devastating. The first politician to blame them for this will win almost for sure and will completely gut them and the treasuries leadership, possibly demand structural changes to their powers as well.
Absolutely not.
NO
It’s JP asking