The main task of the ECB is to maintain price stability. The ECB’s Governing Council considers that price stability is best maintained by aiming for 2% over the medium term.
Price stability creates conditions for more stable economic growth
I mean, I don’t disagree with you on that. I didn’t think your first comment quite conveyed this nuance, and deflationary economies are terrible for everyone.
That’s a myth spread by modern monetary theorists because they only understand the economy from an inflationary perspective. Economies worked fine for millennia without inflationary money.
I don’t think local economies from millennia ago are similar enough to compare to modern global economies with our current population boom. I think we could for sure have a different approach if our population was stable or decreasing.
I’d love to see any evidence or logical arguments that an inflationary economy is worse than a deflationary one.
Don’t you understand that artificially induced unlimited growth is bad? It’s not about inflation or deflation, but the outcome.
https://www.ecb.europa.eu/mopo/strategy/pricestab/html/index.en.html
I mean, I don’t disagree with you on that. I didn’t think your first comment quite conveyed this nuance, and deflationary economies are terrible for everyone.
That’s a myth spread by modern monetary theorists because they only understand the economy from an inflationary perspective. Economies worked fine for millennia without inflationary money.
I don’t think local economies from millennia ago are similar enough to compare to modern global economies with our current population boom. I think we could for sure have a different approach if our population was stable or decreasing.
That means until the early 1900s or 1970s when inflation went into overdrive.
Huh what?
What a wide window, but I’d like to point out that the baby boomers generation happened right around this time.
Fertility rates and total population numbers are not the same thing.
Inequality since Nixon because of the Cantillon effect
Inflation is only a recent phenomenon.
https://nma.org/wp-content/uploads/2016/09/historic_gold_prices_1833_pres.pdf