What makes you think slow, steady inflation matters so much?
You can typically keep your savings growing faster than inflation with relatively safe investments.
You can typically keep your savings growing faster than inflation with relatively safe investments.
Oh and indexed linked gilts are another option.
One reason the target isn't zero is price stickiness. For instance: people react irrationally to drops in their wages, but, obviously, the price of an hour of labor can't be steady: it moves up and down just like anything else that can be bought or sold.
It's just a group of independent people who decided: We'd like to print some money. And Hyperinflation has nothing to do with government failure.
Only delusional people or people with an agenda would argue against there being any connection between inflation and the government.
More like, people don't behave as you would expect if wages were a purely economic transaction.
I don't want to over-sell "rationalism". But loss aversion is extremely powerful.