pochovilla

Fallacy of Inflation Targeting

Dear Mish:
An economist who concludes that 2% growth is exponential will be correct in the long run. But the first 50-75 years at 2% is linear for practical purposes. "Exponential" kicks in around 120 years. Any economist that makes this claim needs to go back to school for some basic math classes. Who, except a fool predicts more than 5 years out? Answer: the guy who sells newsletter advice at $1000 + per year.