TTarget inflation

[Ph_ng_tra_Ph_m]

Why fed and other developed countries need to set target inflation rate of 2%? Can anyone please explain for me, thank you

[S2000magician]

The main idea is that it stimulates current consumption.

[guest]

Richmond Fed: The Origins of the 2 Percent Inflation Target

[Ph_ng_tra_Ph_m]

Thanks a lot really appreciated especially the explanation about the option greeks (very informative and understandable)