this post was submitted on 18 Nov 2023
734 points (94.8% liked)
Gaming
2534 readers
463 users here now
The Lemmy.zip Gaming Community
For news, discussions and memes!
Community Rules
This community follows the Lemmy.zip Instance rules, with the inclusion of the following rule:
- No NSFW content
You can see Lemmy.zip's rules by going to our Code of Conduct.
What to Expect in Our Code of Conduct:
- Respectful Communication: We strive for positive, constructive dialogue and encourage all members to engage with one another in a courteous and understanding manner.
- Inclusivity: Embracing diversity is at the core of our community. We welcome members from all walks of life and expect interactions to be conducted without discrimination.
- Privacy: Your privacy is paramount. Please respect the privacy of others just as you expect yours to be treated. Personal information should never be shared without consent.
- Integrity: We believe in the integrity of speech and action. As such, honesty is expected, and deceptive practices are strictly prohibited.
- Collaboration: Whether you're here to learn, teach, or simply engage in discussion, collaboration is key. Support your fellow members and contribute positively to shared learning and growth.
If you enjoy reading legal stuff, you can check it all out at legal.lemmy.zip.
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
In the past, governments didn't have inflation targets. The black friday event involved the government flooding the gold market, dramatically reducing the value of gold. At the time the value of a dollar was directly tied to the value of gold. In hyper-inflation events (that don't often happen in developed countries but do still happen in some countries around the world), inflation may be 50% or 100% or 200%. Sometimes way more.
These days (the last 30 or 40 years), inflation and gold have been decoupled, and instead the government has a target range of approx 1-3% inflation (depending on your exact government, but if you're in a developed country then it is probably close). This was intended as a target that would allow businesses to have some certainty and was low so they could ignore inflation in their forecasts. The original target range was 0-2% set in New Zealand, but as it spread around the world it got slightly adjusted to a 1-3% range.
The governments now try to directly control inflation by changing the cost of borrowing money. You might have recently had inflation hit as much as 9%, but this is nothing like what happened in the old days.