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Financial and Monetary Systems
Why do the world's central banks aim for 2% inflation?
Since 1996, Fed policymakers have generally targeted an inflation rate of around 2%, because persistently low inflation can pose risks to the economy.
Since 1996, Fed policymakers have generally targeted an inflation rate of around 2%, because persistently low inflation can pose risks to the economy.
The U.S. economy ended 2021 with a lot of uncertainty. Inflation surged to levels not seen since the 1980s – seriously eroding consumer purchasing power.