No. of Recommendations: 13
How the 2% inflation target came about. No great economic research or deep thinking behind it.
In a word, no.
This is probably the single most widely analysed and debated number in global macroeconomics in the last 40 years.
The relevant and competent people think a lot more about stuff than you seem to give them credit for. Rail against elites if it makes you feel good, but one definition of "elite" is someone with the training and intelligence and experience to know what they're talking about.
I don't. I can't follow the intricacies of the papers that conclude that 2% is better than 4%. (not all of them, it should be noted). But I appreciate that some do know what they're talking about, and it's painfully obvious that the number isn't used around the world these days simply because some guy plucked from thin air long ago. They might be off, but they are certainly delving as deeply as they can. It's the current consensus (or mode, at least) of a gigantic ongoing debate and analysis process.
Jim
