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Inflation & the EconomyCentral Banks

Zero Inflation Is the Goal

The Fed aims for about 2% on purpose

If rising prices hurt, why doesn't the Fed aim for zero? It deliberately wants your money to lose about 2% a year.

You'll find out

  • Why the Fed wants prices to rise
  • What a 1930s price drop did to debts
  • The country that invented the target

Why it matters

Falling prices sound like a gift. History says they can freeze an economy, and your job with it.

About 3 min6 interactive slides · 5 questionsLesson 69 · Zone 8

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