alt Hacker News2% is good, anything over 3% is not good, anything over 4% is bad, 5% and higher is really bad. Hope that clears things up for you.
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tastyfreeze • today at 4:54 PM
The FED says that 2% is good. 2% is not good. Their target of 2% per year means we have 2% compounding annually devaluation of our currency.
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embedding-shape • today at 4:51 PM
Can you really say that based only on the inflation? What if wages increased 6%, then 3% inflation wouldn't be as bad as if inflation raised 2% but wages only increased 0.1%? At least if you think about purchasing power I suppose. But won't claim to be an expert on this, happy to be educated by those who are :)
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It depends on the country. Brazil, due to its hyperinflation days, has a lot of indexed prices. These are prices that automatically increase due to inflation. This makes the country to have so called inertial inflation, current inflation caused by past inflation, and also makes it more robust to a higher inflation.