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by mamonster
1204 days ago
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2% is basically the safe spot to prevent deflation If you target 1% and you screw up your policy you might go below 0%, which is a big no-no according to modern economics and CB policy. The actual big question which none of the CBs want to answer is whether deflation would necessarily be bad today. Modern CB discussion on deflation is basically "Great Depression bad" and "Look at Japan". |
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