Here in Australia we have a mandated inflation target of 2-3%. In my opinion this is arbitrary and has been chosen as a point that allows enough inflation to stimulate growth whilst not getting out of hand with prices.
That goal is reasonable but what interests me, in light of your footer, is the rate of growth in many other countries and India and China are the two prime examples. With growth rates of 8-11% pa and net inflation of 5% presently in hand they are accelerating away from us.
For a giant economy like USA it's not such a problem but a small economy like ours is definitely threatened when our neighbours are accelerating way from us like this.
