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Have still never heard a good explanation as to why it's 2% at all
Good point. No doubt these mainstream Keynesian economists think some inflation is good, and they're all terrified of the evil deflation bogeyman, which would amplify government debt.
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if deflation so bad why don't we stay as far away from it as possible?? 2% is too close for my comfort, lets get to like 50%, much less likely to have deflation from there.
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I think they hear you and agree. They're just working up to it.
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2% is low enough where people dont really realize they're being stolen from.
If someone came and took 5% of the stuff in your home, you may suspect something was up. At 10% you'd know. At 20% you'd be pissed. But at 2%, you probably never notice at all.
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It’s made up. New Zealand banker/economist decades ago mentioned getting inflation to 2% and it stuck. I haven’t seen anything other concrete reason apart from it’s not low not too high.
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