A tighter inflation target drives interest rates upward. – Father of Inflation Targeting Says on Dictic Podcast That There’s Not Much Science Behind It
Closely related is rising interest rates Inflation targetingInflation targetingIt is considered a healthy increase in prices in a society. Achieving this goal is the most important mission of Norges Bank.. In this week’s Deep Dive, we ask a question taken for granted: Why does the inflation target have to be exactly 2 percent?
Inflation in Norway has long hovered around 6 percent, but Norges Bank has had to seek sustained interest rate increases to move it toward its 2 percent target. Why don’t we have a higher inflation target?
– I think that debate will come up more and more, says Sindre Heyerdahl, economic commentator at E24.
In this week’s Dydykk, we’re in Arendalsuka to look at Ida Wolden Bache’s interest rate decision. We bring you the story of how New Zealand graduate Curly Topp invented inflation targeting, as well as how it made its way into Norway in 2001 – in the shadow of the Act.
Looking ahead, Heyerdahl sees a future where inflation will moderate further, but it may be difficult to remove the last “fat” towards the 2 percent target.
But today’s tighter inflation targeting came into effect only in 2018.
– Changing the inflation target is not a good idea, says Economics Minister Steiner Holden of the University of Oslo.
Behind the scenes with Deepdykk
Deepdykk is a social podcast that explores the big questions of the times we live in. Many people know Marit Erikstotter Jellen from her podcast News Explained, but over the past year she’s been exploring the big questions behind current news.
– At Dydykk, we explore the themes shaping our times. Because what really is in the 2020s? Everything is expensive, war is raging, and soon machines may be smarter than us. It fascinates me that these changes seem to happen so quickly, but when you immerse yourself in it, you soon discover that the signs of the changes are long-lasting, says Jellen.
In Season 1, we also explored topics such as artificial intelligence, conspiracy theories, and the electricity market. Dypdykk is published every second Wednesday Potme and Aftenposten.
Have an idea or topics you think we should cover? Email us at [email protected].
- Listen to previous episodes of Dypdykk here:
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