In reply to: Inflation as a relative metric may have been tamed posted by El Kabong
Whether this is official policy or not, it is certainly the public expectation of the ideal inflation rate, since it is often cited as our official inflation target.
years trying to get the inflation rate up to their target even with zero interest rates.
Two points: They never came up with a definition of "longer run" and this was to be the (vague) policy when they missed the target on the down side.
I think that discussion is moot. We're back to the "two percent and bygones are bygones" formulation which we've had since they set a numerical target in the 1990's.
Targeting