This book analyses the controversial and critical issue of 2% inflation targeting currently
practised by central banks in the US Japan and Europe. Where did the 2% target inflation
originate and for what reason? Do these reasons stand up to scrutiny? This book explores these
key questions contributing to the growing debate that the global 2% inflation standard
prescribed by the central banks in the advanced economies globally is actually contributing to
the economic malaise of these nations. It presents novel theoretical perspectives intertwined
with historical and market understanding and features analysis that draws on monetary theory
(including Austrian school) behavioural finance and finance theory. Alongside rigorous
analysis of the past and present the book also features forward looking chapters exploring
how the 2% global inflation standard could collapse and what would ideally follow its demise
including a new look at the role of gold.
