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by rthomas6 4572 days ago
Correct me if I'm wrong, but I'm pretty sure most economists theoretically prefer an inflation rate of 0. However, they see inflation as less bad than deflation, so they err on the side of caution by generating a safety margin of inflation.
1 comments

http://en.wikipedia.org/wiki/Phillips_curve

this is an old theory and has been refined over time, but its still the basic model taught in economics courses.