Hey all.
Terribly sorry for the delay in posts, but I'm currently working on buying some new property (remember, all aspiring economists, it's now a buyers market out there!).
So to whet your appetite for economic discourse, here's something that's always been bothering me;
Monetary policy.
Monetary policy was never a strength of mine, but I’m finding it harder and harder to see why it’s so difficult.
Will somebody please tell me why we have a target inflation rate of 2% and not 0%? And I know that if we get inflation of 0% the deflationary fighters’ fear/argument is that, "we could fall into deflation which would have the same misallocation/wealth redistribution effects and problems inflation has except in reverse."
So what?
It would seem to me deflation is the easiest thing to fight and politically beneficial;
PRINT MONEY.
Japan had been staving off deflation for years, most recently by printing money and this was actually heralded as "genius monetary policy" in The Economist no less.
Like to think I’m missing some gapping thing here, but I just can't see it.
Any central bankers out there?
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