Rethinking The Fed’s 2% Inflation Target: Spotlight On An Absurd Debate

“Absurd Discussion, Multiple Levels

  1. Central banks do not even know how to measure inflation. Yes, they have there smoothed formulas etc. But the alleged “average” rate of inflation is “average” nonsense. Home prices are not in the CPI nor are asset prices in general. Central banks have not once in history spotted a bubble. Bernanke and Greenspan went out of there way to deny them. If you cannot spot bubbles, how the hell can you possibly know if interest rates are too high or too low?”