Inflation and growth: Is price stability at 2%?📊📉✨✨✨
Is the equilibrium: 2%? Inflation for growth.
In the complex board of the global economy, few pieces move with such caution and at the same time with such impact as the decisions of central banks. We are talking about institutions like the Federal Reserve of the United States (Fed), that giant that, like a juggler, tries to keep two balls in the air at the same time: price stability and full employment. It seems like a noble mission, right? But if we think about it, it is a contradiction in itself. How to achieve total stability and unchecked growth at the same time? Simply, it cannot be done absolutely.
The reality is that these two missions, taken to the extreme, are impossible to achieve. The only way for them to coexist in relative harmony is by finding a middle ground. And this is where moderate inflation comes into play, not as a villain, but as an ally of growth. Yes, just as you read it. A controlled dose of inflation can indeed be positive. It stimulates spending, consumption, and investment, lubricating the gears of the economy.
The Mirage of Scarce Money: The Deflation Trap
Here is where I would like to stop the machine and throw a stone at the roof of some in the crypto community. I understand the fascination with scarcity, with "hard" money that cannot be inflated at will. Scarce money is idealized as the panacea, the magic solution to all monetary ills. But have we forgotten the lessons of history so quickly?
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