1. Most central bank economists have abandoned the standard of price stability, and now target a specific CPI number. The Fed targets 2%, for example.
2. A 50 car pileup will employ EMS personnel, hospital staff, tow truck drivers, road cleanup crews, etc. Then later, new car assembly, transportation, DMV workers, and car salesmen.
It's worse than that. Central bankers define 2% inflation as price stability. 2% isn't even stable, it's compounding, prices go up more every year than in the previous year, and CBs say they achieved "stability". Odd use of the word!
2. A 50 car pileup will employ EMS personnel, hospital staff, tow truck drivers, road cleanup crews, etc. Then later, new car assembly, transportation, DMV workers, and car salesmen.
https://en.wikipedia.org/wiki/Parable_of_the_broken_window