@buzzlighter

To sum this up, central bankers generally have a positive inflation target- which isn't necessary and is hard to even define. The default inflation rate in a functioning society is negative, because better technology makes us more efficient at making most things over time. If policymakers reach a goal of 2% average inflation per year, it probably means money supply and truly scarce things went up by 5-7% per year, semi-scarce things went up by 3-5% per year and were offset by some declining prices of non-scarce things due to productivity gains and globalized labor arbitrage. It's important to monitor the broad money supply because that's usually a better representation of the price increases for things that require significant resources to produce and that are sought after. /Lyn Alden, Broken Money

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