Should
inflation targeting lose its appeal more broadly, this would not be surprising — the list of retired monetary theories is long.
Not exact matches
We should also not
lose track of finding a historically valid
inflation target (not 2 %) What about ways to combat
inflation without throttling growth?
A departure from that runs the risk of
losing the nominal anchor that the
inflation target provides.
With an
inflation target, the Fed quantifies, with some certainty, how much actors will
lose if they choose to hold cash.
That's well below the
target inflation rate, which means we're essentially
losing money by having it in savings.