2% is a somewhat arbitrary target that was established. They can change this acceptable target rate for price stability if the new economy demands it. After all, the current administration is trying to completely alter the global economy….
The problem, is that if they choose to change the target, the whole markedet will loose some trust in the central bank.
You can't just change your course because that has always been the target for the economy, and why change it now, and not when the 2% wasn't achievable before, why not change it back then.
ECB has already answer that question, they are not changing course, otherwise they would have done it before.
It hasn’t always been the target, it was established post GFC. I’m not saying the current administration’s strategy is good and I definitely think they are losing faith on the global scene with our allies. It’s impossible to predict the impacts if they stay the course on this…
It hasn’t always been the target, it was established post GFC. I’m not saying the current administration’s strategy is good and I definitely think they are losing faith on the global scene with our allies. It’s impossible to predict the impacts if they stay the course on this…
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u/Various_Car8779 22h ago
He's obligated to step in when unemployment spikes