Policy Makers Rethink a 2% Inflation Target

Big debate now for central bankers is what would be a better target

What’s so special about 2% inflation?

From Ottawa to Oslo, policy makers have been considering whether that level of consumer-price growth, a Holy Grail for the world’s major central banks over the past quarter-century, is still relevant.

The 2% target was always an arbitrary figure, some economists argue, and even if it was optimal two decades...