> How would you save up cash for a good investment opportunity if it just died?
That depends on how fast it died. Too much inflation is clearly bad, but so is none at all. And deflation is really, really bad. The last time the world saw deflation was during the Great Depression of the 1930s.
Empirically, 2% seems to lead to pretty good outcomes by my personal quality metric. That's a halving of value every 30 years or so, which seems about right to me.
That depends on how fast it died. Too much inflation is clearly bad, but so is none at all. And deflation is really, really bad. The last time the world saw deflation was during the Great Depression of the 1930s.
Empirically, 2% seems to lead to pretty good outcomes by my personal quality metric. That's a halving of value every 30 years or so, which seems about right to me.