Of Kiwis and Currencies: Neil Irwin

The transcript discusses the origins and global adoption of the 2% inflation target, starting in New Zealand. It explores the debate on whether this target is adequate, considering alternative views like a 4% model. The discussion includes the differences between core and headline inflation, the psychological and practical aspects of inflation targets, and their impact on savings and global economic imbalances. The transcript highlights the challenges faced by central banks, particularly the Fed, in managing inflation and savings in a changing global economy.

How did the concept of a 2% inflation target become widely accepted among central bankers?

What concerns are being raised about the 2% inflation target?

What historical context influenced the development of inflation theories in the 80s and 90s?

Discuss the potential risks associated with maintaining a low inflation environment.

What are the implications of low inflation on saving and investment in the economy?