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To: C19fan
The Fed famously has a dual mandate: It's supposed to promote the maximum level of employment consistent with its two-percent inflation target.

No. Part of the dual mandate is stable prices. Two percent inflation is not stable prices. Your money losing half its value in 36 years is not stable prices.

2 posted on 05/03/2012 6:52:31 AM PDT by NeoCaveman ("If I had a son he'd look like B.O.'s lunch" - Rin Tin Tin)
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To: NeoCaveman
Two percent inflation is not stable prices. Your money losing half its value in 36 years is not stable prices.

I had an economics professor who stated that the economy can handle any constant, predictable rate of inflation or deflation except for two sticking points: physical currency being excluded from the nominal growth or shrinkage of values and taxes being charged on gains that come strictly from inflation. Other than those an economy could handle 100% inflation just so long as it was predictable. But of course the "other than that" is similar to saying "other than that Mrs. Lincoln, how was the play".

11 posted on 05/03/2012 7:14:23 AM PDT by KarlInOhio (You only have three billion heartbeats in a lifetime.How many does the government claim as its own?)
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