Why do central banks keep chasing that magical 2% inflation target when it seems increasingly out of reach? The reality might be more uncomfortable than policymakers want to admit.

Here's the thing: price stability sounds great in theory, but the math just doesn't work anymore. Major central banks have locked themselves into this 2% framework, yet achieving it consistently has become nearly impossible without breaking something else in the financial system.

Think about it. Every time they get aggressive with rate hikes to crush inflation, credit markets seize up. But when they back off to prevent a crisis, inflation roars back. It's like trying to balance on a knife's edge while blindfolded.

The structural factors working against them are massive: supply chain fragmentation, demographic shifts, energy transition costs, and deglobalization pressures. These aren't temporary headwinds—they're permanent features of the new economic landscape.

Maybe the uncomfortable truth is that 2% was always arbitrary. A relic from a different era with different dynamics. Central banks might need to accept that the cost of achieving their stated target now exceeds the benefit.

For those of us watching from the crypto space, this matters enormously. When traditional monetary policy hits its limits, alternative assets start looking a lot more rational. The instability isn't a bug—it's increasingly becoming a feature of the legacy system.