Encyclopedia of Opinion
Question
Should central banks target 2% inflation?
Position1 of 3

Yes, inflation targeting provides monetary stability

This position holds that central banks should target 2% inflation, as it provides monetary stability. It argues that a small positive target leaves a buffer against deflation — which central banks struggle to combat — and that low, stable inflation helps the economy run efficiently.

Supporting arguments · 1

  1. Low, stable inflation helps the economy operate efficiently
    When inflation is low and stable, individu­als can hold money without having to worry that high inflation will rapidly erode their purchasing power.