The inflation target: nearly every major central bank has chosen an inflation target of 2%. a. Why might a central bank choose a lower inflation target, for example, zero inflation? b. Why might a...

The inflation target: nearly every major central bank has chosen an inflation target of 2%.

a. Why might a central bank choose a lower inflation target, for example, zero inflation?

b. Why might a central bank choose a higher inflation target, for example, 4% inflation?