Deflation is bad. Some inflation means people won’t over-hoard money, and also diminishes the real value of debt.
Real interest rate is a real thing (which is related to economic growth, increasing productivity), so inflation is opportunity cost of holding cash.
He didn't answer the question; although I agree the vid cuts off the rest of conversation so I'm not sure if he gets around to answering it or not. However, in this snippet he sounds like a fool.
Assuming your salary is adjusted for inflation, it makes borrowing money less expensive over time, and so, this is a stimulus for investment, and so innovation.
This 2% is what cronies and oligarchs get. Too small for ordinary people to realize (until it's very late), but still positive. Of course cronies achieve an effective rate of 15%. Opt out, but Bitcoin
it's pretty much making idley sitting money lose value/purchasing power without disrupting overall economic growth. its also a low enough interest rate that borrowing money doesnt cost an arm and a leg.
The fed's Jerome Powell trying to convince you that 2% inflation target is beneficial to your financial well being.
In reality, inflation is a hidden tax. Furthermore, without inflation the Capitalist Corporate system goes into meltdown
Bitcoin has nothing to do with inflation. Seems a bit silly. Consume energy and computing equipment and get awarded a ledger entry for the expense. Then call it digital gold. Remarkable.
What powell didn't tell - 2% is the globally accepted number because that's the currency debasement figure that will keep people from revolting & taking to the streets while still losing their purchasing power gradually.