Tag Archives: inflation target

and of a 3% inflation target? There is some risk of recession in the USA because the FED insists on driving inflation down to 2%.  Oddly back in the naughts when inflation was persistently below the 2% target, there was more discussion of raising the target. Then IMF chief economist discussed it. Paul Krugman advocated it: “The basic point is that a higher baseline for inflation would make liquidity traps, in which conventional monetary policy...

So it was 1990 that the New Zealand central bank became the first in the world to impose an inflation target of 0-0.002.... EconospeakOrigin of the 2 Percent Inflation TargetJ. Barkley Rosser | Professor of Economics and Business Administration James Madison University