I have a question at the intersection of Economics and Politics.
Every country has her own inflation target. But who, how and on what basis is it determined? Of course, we know that too big inflation is bad and deflation is bad, but why it's around 2% (depending on a country) and not around 1% or 3% or any other? Maybe a little deflation (around 1%) would be better?
I am trying to understand why the inflation target is set to some exact value. What is the process of setting this value. Who is responsible for this task and what data does he work with.
Are there any scientific publications explaining the process of determining the inflation target?