There is absolute monetary stability when the price level does not change at all. The prices of the individual goods can definitely change. However, the condition is that price increases of individual assets are offset by the price decreases of other assets.
Economic policy has so far only been able to achieve absolute price stability in rare cases and only for a short time. For this reason one is content with a relative price stability. Price increase rates of 2-3% are already considered a great success.
Inflation rates that are above the stated target have considerable disadvantages. The savers are harmed if the inflation rates (= rate of price increase) are higher than the savings interest. On the other hand, preference is given to debtors and owners of real assets (such as land, business assets and shares). If the domestic price level rises faster than the foreign one, exports will be impaired, so that jobs will be put at risk.
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