Even 2% Inflation Is Too Much
https://mises.org/power-market/even-2-inflation-too-much
> Alex Pollock’s latest letter to the editor at the WSJ appeared on Saturday, November 1:
> As your editorial (”Getting Used to 3% Inflation,” October 25-26) suggests, 3% is a lot of inflation, much worse than 2%, which is already too high. At sustained 2% inflation, which the Federal Reserve promises, average prices will nearly quintuple in a lifetime of 80 years and the dollar will shrink to a value of 20 cents. At 3%, average prices will multiply by more than 10 times, and the dollar will become 9 cents. Neither satisfies the goal of “stable prices” assigned by the Federal Reserve Act, but 3% misses by a mile. As the great Paul Volcker wrote in his autobiography, “The real danger comes from encouraging or inadvertently tolerating rising inflation and its close cousin of extreme speculation.”
> Yours truly,
> Alex J. Pollock
https://stacker.news/items/1274314