On: Why the 2% inflation target? (2023)

[immibis]

ZIRP is an artificial intervention in the market: Whenever it costs money to borrow money, the government will print some and give it for free to whoever is looking to borrow it.

[neilwilson → immibis]

Government always spends by printing money. Just as banks always spend by printing money.

Taxation and loan repayments then shred money.

There is no fixed quantity of little silver coins we pass around and never has been.

There is no need to pay a third party for an accounting credit when you run the system

[immibis → neilwilson]

ZIRP isn't just zero interest rate for the government; it's near-zero interest rate for everyone.