The main task of the ECB is to maintain price stability. The ECB’s Governing Council considers that price stability is best maintained by aiming for 2% over the medium term.
Price stability creates conditions for more stable economic growth
I mean, I don’t disagree with you on that. I didn’t think your first comment quite conveyed this nuance, and deflationary economies are terrible for everyone.
That’s a myth spread by modern monetary theorists because they only understand the economy from an inflationary perspective. Economies worked fine for millennia without inflationary money.
I don’t think local economies from millennia ago are similar enough to compare to modern global economies with our current population boom. I think we could for sure have a different approach if our population was stable or decreasing.
Don’t you understand that artificially induced unlimited growth is bad? It’s not about inflation or deflation, but the outcome.
https://www.ecb.europa.eu/mopo/strategy/pricestab/html/index.en.html
I mean, I don’t disagree with you on that. I didn’t think your first comment quite conveyed this nuance, and deflationary economies are terrible for everyone.
That’s a myth spread by modern monetary theorists because they only understand the economy from an inflationary perspective. Economies worked fine for millennia without inflationary money.
I don’t think local economies from millennia ago are similar enough to compare to modern global economies with our current population boom. I think we could for sure have a different approach if our population was stable or decreasing.
That means until the early 1900s or 1970s when inflation went into overdrive.
Huh what?
https://discuss.tchncs.de/pictrs/image/e18e710a-c728-46ce-b341-d3d049072e14.png
What a wide window, but I’d like to point out that the baby boomers generation happened right around this time.
Fertility rates and total population numbers are not the same thing.