Wednesday, December 3, 2014

What's the original inflation target?

http://davidstockmanscontracorner.com/the-volcker-standard-inflation-should-be-eliminated-not-targeted/

Paul Volcker believes we should not target any inflation value. The Federal Reserve has a dual mandate:
  1. price stability, that is near zero inflation, and
  2. low unemployment.
The interpretation of the price stability is positive but near zero inflation. That's an asymmetrical goal, and near zero is not two percent.

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