Episode 879: The Secret Target

By Sarah Gonzalez,

Darian Woods, Karen Duffin, Sarah Gonzalez

Published November 30, 2018 at 9:27 PM CST

Their plan was dangerous, risky, and extremely unpopular. But America — and much of the rest of the world — copied them anyway.

Today on the show, how New Zealand changed the way governments all over the world run their economies. This tiny country created an idea called inflation targeting.

Inflation is like a spice. None is boring. A little goes a long way. And too much can ruin everything. So governments spend a lot of energy trying to keep inflation at just the right level. They want prices to rise every year, but just a little. In the United States, the Federal Reserve uses a two percent target.

This seems totally reasonable and obvious. Find the right level, make it happen. But for the longest time, that's not how it worked. Inflation was an untamed beast.

Warning: This episode involves a dramatic re-enactment of a secret Federal Reserve meeting.

Music: My Life With You and Hans Pucket's "Comfort"

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Sarah Gonzalez

Sarah Gonzalez is the multimedia education reporter for WLRN's StateImpact Florida project. She comes from NPR in D.C. where she was a national desk reporter, web and show producer as an NPR Kroc Fellow. The San Diego native has worked as a reporter and producer for KPBS in San Diego and KALW in San Francisco, covering under-reported issues like youth violence, food insecurity and public education. Her work has been awarded an SPJ Sigma Delta Chi and regional Edward R. Murrow awards. She graduated from Mills College in 2009 with a bachelorâ

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Darian Woods

Darian Woods is a reporter and producer for The Indicator from Planet Money. He blends economics, journalism, and an ear for audio to tell stories that explain the global economy. He's reported on the time the world got together and solved a climate crisis, vaccine intellectual property explained through cake baking, and how Kit Kat bars reveal hidden economic forces.

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Karen Duffin

Karen Duffin (she/her) is a co-host and reporter for Planet Money, NPR's award-winning podcast that finds creative, entertaining ways to make sense of the big, complicated forces that move our economy. She joined the team in March 2018.

See stories by Karen Duffin

Sarah Gonzalez

Sarah Gonzalez is a host and reporter with Planet Money, NPR's award-winning podcast that finds creative, entertaining ways to make sense of the big, complicated forces that move our economy. She joined the team in April 2018.