Yes. They want to avoid deflation like the plague, and a 2% target gives them a margin of error.
Thanks!
Cathie Wood of ARK Invests says there are two kinds of deflation, good deflation and bad deflation. High tech creates good deflation and the government reduces inflation by adding in High tech deflation under the pompous title of “Hedonic Value.”
What is Hedonic Value
1. A dimension of consumer perceived value associated with senses, pleasures, feelings, and emotions. Learn more in: Customer Perceived Values and Consumer Decisions: An Explanatory Model
2. Hedonic value is defined as that value a customer receives based on the subject experience of fun and playfulness (Babin et al. 1994). Learn more in: Understanding Consumer Recommendation Behavior
3. The degree to which a product/service arouses emotions and creates pleasant experiences. Learn more in: A Conceptual Framework of Value Sharing in the Sharing Economy
4. Experiential and affective benefit. Learn more in: Conceptualization and Measurement of Smart Shopping
https://www.igi-global.com/dictionary/hedonic-value/12938
Why can’t the Fed do the same sleight of hand instead of screwing with the economy and markets?
The Captain