You’re on to something: the 2% inflation target is just an arbitrary value.
It means your salary is constantly going down for doing the same work - you have to stay on the treadmill just to stay in place.
But if you’re an asset holder then the prices of your holdings appreciate indefinitely, and governments get the power to levy this constant invisible tax on the workers.
You’re on to something: the 2% inflation target is just an arbitrary value.
It means your salary is constantly going down for doing the same work - you have to stay on the treadmill just to stay in place.
But if you’re an asset holder then the prices of your holdings appreciate indefinitely, and governments get the power to levy this constant invisible tax on the workers.
Mark Blyth is an expert on the topic: https://youtu.be/GXBSNCysxiA