[Jerome Powell/Chairman of the US Federal Reserve Board: Inflation target of 2%.]



[Changyong Lee/President of the Bank of Korea: 2% inflation, which is the mandate of the Bank of Korea.]



2%, which the heads of the US and Korean central banks are equally emphasizing, The inflation target is to keep the price level at 2%.



Not only the United States and Korea, but also the United Kingdom, Japan and France, and many of the major developed countries are 2%.



The whole world has now taken an emergency to meet this 2%.



But there are 1, 0, and 3, so why is it 2%?



A lot of people were more curious than I thought.



It is to the extent that it is included in the 'Frequently Asked Questions' on the website of the Central Bank of the United States, and the answer is that 2% is the figure that balances price stability and economic growth.



Between this difficult balance, where falling prices stagnates growth and pursuing growth stimulates prices, 2%, like Da Vinci's golden ratio, strikes a perfect balance.



So when was the 2% created?



It sounds like an old economic principle, but it's actually not that old.



In 1989, New Zealand, which was suffering from inflation, introduced the first inflation target, and Canada followed suit with 2%, and it spread with a time lag.



It is known that the United States also introduced it at Greenspan in 1996, but it is not publicly announced, but in 2012, Bernanke announces a goal of 2%.



The Bank of Korea introduced it in 1998.



However, the heads of central banks in major countries say that they must climb to the top of this 2% mountain.



In order to meet 2%, that is, to lower prices, the entire world, starting with the United States, is conducting tight monetary policy.



They are raising interest rates at an excruciating rate.



However, as the risk of economic recession increases due to austerity, more and more people are asking the fundamental question, “Is this mountain really right?”



Professor Stieglitz, Nobel laureate in economics, is saying, "The process of reaching 2% is a serious tyranny for households and businesses."



Professor Paul Krugman, who also won the same award, and Olivier Blanchard, who served as the chief economist of the IMF, also pointed out, "If you keep the 2% limit too much, the economy may plummet unnecessarily. So it is necessary to revise the target."



China, which was the world's factory, was blocked by Corona, and the global supply chain was damaged by the war between Ukraine and Russia.



In addition, the trade conflict between the United States and China has raised production costs while triggering the concept of self-reliance and economic security.



In other words, this 2%, which was set in the golden age of globalization that brought about low prices, may be unrealistic now when inflation is stuck.



The central bank's concerns are as follows.



If the target is revised, it can be seen as surrendering to the fight against inflation, which can stimulate prices.



At the recent Monetary Policy Committee meeting in January, Governor Lee Chang-yong said this.



"Are you talking about moving the goal post because the ball is not going well? That's the worst way."



However, the goal post itself is in a position that is so difficult to score goals that many players, who are the main players of the economy, are getting injured one after another. The market is asking questions.



If the cost of economic recession is too excessive to meet the inflation target, it is necessary to start thinking about flexibility.



(Planning: Kwon Young-in, composition: Kim Tae-yeon, video coverage: Yoo Dong-hyeok · Cho Chang-hyun, video editing: Lee Seung-hee, CG: Seo Dong-min)