Is America's 2% Inflation Target Still Relevant?

The 2% inflation goal, set in New Zealand in 1990 and later adopted by the US in 2012, may no longer be relevant for the American economy.

According to Irwin Stelzer, writing in The Sunday Times, the economic landscape has changed significantly since this target was implemented. He questions why it remains a goal, given its outdated origins.

The US adopted the 2% inflation target in 2012, more than two decades after New Zealand first introduced it. Since then, the American economy has undergone significant transformations.