What's the real reason they say they want 2% inflation?

What's the real reason they say they want 2% inflation?

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who said this

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To keep the Ponzi afloat and slowly leech money from the poor and middle class.

So more wagies get into income tax levels so feudalism can be restored.

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They say 2% because if you boil the frog too quick it may jump out of the pot

aka this:

>“Modern economic theory says that inflation expectations are an important determinant of actual inflation,”
this all just seems like nonsense

If inflation is 0% or lower it creates bigger unemployment problems in downturns because wages are sticky, or so the theory goes

Exactly

It's a psycological economic reason called liquidity trap

Yeah, basically this. People tend to be fine when they are getting raises but pay cuts are very hard to implement without losing employees and thus losing productivity. In times of recesion, a pay cut would be a good idea but after countless tries companies just figured out it's pretty much counterproductive to try to lower the wages of their employees. Inflation just does it more naturally without people noticing the loss of money. There are other reasons like interest rates but the wages one seems to be more easily understood for people without any background in economics.
It's funny how people here have no education but spout shit like they figured this thing out themselves. The economy is hard, even for people that have studied it for countless years so people without some basic knowledge tend to fall for some stupid conspiracy theories.

inflation = hidden tax.

This is exactly why BitcoinSoV (BSOV) was made. BitcoinSoV is the Worlds first Mineable and Deflationary Token. Its bitcoin but deflationary but with faster transactions and compatible with all erc20 wallets. BSOV is going to explode as awareness grows about how detrimental hyperinflation is to people.

Money is a measure of the debt society owes you.

Inflation assigns time preference to those debts so that more recent contributions are weighted heavier.

To create the illusion that they are credible ((financial institutions)) and that they can actually control inflation. Meanwhile in reality, inflation is close to 5% and Real interest rates are sub zero.

sorry for doubting you Mr Shekelberg

You truly are our greatest ally

This is an argument against inflation

so basically wagies can't do math

It's low but not close enough to deflation to spook

Deflation would wreck the gdp

2% compounding skims a lot of wealth relatively unnoticed.

But virtually every recession we've had for the last 100 years involved deflation, not inflation

i hear this often that deflation is bad but i don't understand why. don't consumers want to pay lower prices?

Hey cunt, in the United States FREEDOM is supposed to come first. Fuck your economic efficiency and whatever else. Your economic degree is worth less than the place mats on my dinner table.

Yeah that’s the problem, according to the theory. If they aimed for 0 inflation instead of 2% or whatever, there would effectively be even more deflation on average, making the unemployment problem worse

this. they can't steal your savings too fast or you might wake up.

investopedia.com/articles/personal-finance/030915/why-deflation-bad-economy.asp

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Inflation is a 2% per year tax intended to punish those who hold dollars