Fed wants inflation to get down to 2% – but why not target 3%? Or 0%?
- Written by Veronika Dolar, Assistant Professor of Economics, SUNY Old Westbury
The Fed is taking aim at its inflation target. krisanapong detraphiphat/MomentWhat’s so special about the number 2? Quite a lot, if you’re a central banker – and that number is followed by a percent sign.
That’s been the de facto or official target inflation rate for the Federal Reserve, the European Central Bank and many...
