I think you have misread ElK
by ufl (2024-02-27 14:15:15)
Edited on 2024-02-27 15:46:50

In reply to: Going back to 2% just means that price increases have slowed  posted by EricCartman

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He's not talking about return to the level of prices just before inflation rose above 2%. He's talking about graphing where prices would be if we had experienced 2% every year since then and getting the actual price line to intersect that line at some point.

We could, in principle do this by having 1% inflation for some period of time. However, I agree that a monetary policy which would produce that would probably be accompanied by a recession.

That is indeed what I meant *
by El Kabong  (2024-02-27 15:38:45)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply

It does go both way though
by DBCooper  (2024-02-27 16:31:38)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply

inflation from 2008 to 2021 was well below historical averages. So we were due for some catch up. Certainly, not what we have seen in 2022 and 23.