Why is it so important to get inflation down to two per cent?
The Decibel
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The History of Inflation Targeting
Central banks were trying to figure out a new model for doing monetary policy. By the 90s, central bank was like, hmm, why don't we try targeting inflation itself? 2% kind of became the commonly accepted thing around the world that inflation targeting central banks would try to hit. When inflation is above 3% or 4%, people start to notice it and Bank of Canada basically doesn't want people to think about it.
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