nordanney
2024-12-13 12:20:39
- #1
That is the definition of price stability, because with the +/-2% there is a - as it is nicely put - medium-term calculable basis for companies and consumers. Too little inflation or deflation is bad, too high is also bad. And for the EU, 2% is considered appropriate. In Switzerland, for example, 0-2% is considered appropriate to ensure healthy economic development. That is why the Swiss are already afraid of possible negative interest rates from the central bank, as these have negative effects on price stability and thus on economic development.Especially since that is already a joke in itself, because the inflation target is set at 2% and thus contradicts the word "price stability." Prices rising by 2% per year are everything but stable.