This is a dilemma
indeed, when the Fed wants to soon raise interest rates to curb inflation below
2% (approximate), but there is also the opinion that it is not time to do
because it will suppress the financing that will reduce consumption, on the
other hand it is still in the form forecast
data (unrealized), in addition to the argument that the inflation target of 2%
is not a realistic target that needs to be easing 2% more.
I agree with the last, which is reviewing the inflation target
It is also likely to be the fault of the developing countries and developed countries.
I agree with the last, which is reviewing the inflation target
It is also likely to be the fault of the developing countries and developed countries.
What is it:
- How much actual interest rate is optimal ?
- How much actual inflation rate (the target) is optimal ?
- How the actual exchange rate is optimal ?
So
in this regard, you can not specify a target inflation as measured by the
ability of the country, for example the unemployment rate, the market price of
commodities and others. Because
we also have to pay attention to stock prices, currency values, and others with
fluctuations faster than inflation.
It
could be 2% it is already above the optimum level of inflation or otherwise is
still far below the optimum point.
Thanks (^_^)
Thanks (^_^)
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