Finance & Fury Podcast

Welcome to Finance and Fury, The Say What Wednesday edition – Every week answering your questions – Hi Louis, thank you for the great content and the research you put in! I have another question you might be able to tackle: why do central banks target 2-3% inflation? what are they trying to accomplish by having it in that range? And in a world where inflation is less than 2% and interest rates are around 0%, what happens to people who rely on defensive assets (fixed income) like retirees? It seems like this would be a world where UBI (universal basic income) would have a place. What are your thoughts on this? Thanks, Gab Great question – break this down into two parts Why does the RBA have an inflation target, why it is set the target to 2-3% p.a. Looking at retirees/savers   RBA - The Reserve Bank of Australia's – RBA - central bank that conducts monetary policy Purpose is providing stability in the financial system and promoting efficiency and competition in the payments system – indirect functions throu