Audio Mises Wire

Home | Mises Library | What Is the Right Inflation Target for Central Banks?

What Is the Right Inflation Target for Central Banks?

Audio Mises Wire

Tags The FedInflationMonetary Policy

08/30/2023Jonathan Newman

The "2 percent" inflation target is purely arbitrary, and mainstream economists can't agree on the "right" level. It's all folly, and Austrian economics explains why. 

Original Article: "What Is the Right Inflation Target for Central Banks?"

Note: The views expressed on Mises.org are not necessarily those of the Mises Institute.
Author:

Contact Jonathan Newman

Dr. Jonathan Newman is a Fellow at the Mises Institute. He earned his PhD at Auburn University while a Research Fellow at the Mises Institute. He was the recipient of the 2021 Gary G. Schlarbaum Award to a Promising Young Scholar for Excellence in Research and Teaching. Previously, he was Associate Professor of Economics and Finance at Bryan College. He has published in the Quarterly Journal of Austrian Economics and in volumes edited by Matthew McCaffrey and Per Bylund. His research focuses on Austrian economics, inflation and business cycles, and the history of economic thought. He has taught courses on Macroeconomics and Quantitative Economics: Uses and Limitations in the Mises Graduate School. He is the author of two children's books: The Broken Window and Ludwig the BuilderHis commentary appears regularly in the Mises Wire and Power & Market.

Original Article: 
What Is the Right Inflation Target for Central Banks?