What Should the Fed Be Doing?

The two % ideal that came out of the era is just basically a compromise between the people who wanted to go down all the way to zero and the people who didn't want to go down at all, cause they thought it would be too costly. And this two % number started out as just a very pragmatic thing, without any substantial, a theoretical basis at all. Now you have more people arguing that we should go up from two% to three or even four%. Then this is partly driven by the fact that real interestrats have fallen secularly, and we don't want to get ourselves back into a zero lower bound problem. Like we had after two thousand eight where ouar,