3 ms·
That's really cool you looked up the press release! Yeah, that's right, the central bank sets the rate. But the government could have managed inflation by other
by viburnum 6y ago
That's really cool you looked up the press release! Yeah, that's right, the central bank sets the rate. But the government could have managed inflation by other means, by regulation, raising taxes (perhaps on those who could most easily pay them), cutting spending, or adjusting trade policy, rather than giving investors 5%/year for doing no work.
- freeone3000 6y agoYou seem to have the purpose of rate increases reversed. Low interest rates actually help investors more. You're able to trade on margin for cheaper, which is the real driver of large investment firms. The rate is raised when you want money to leave the system.
- viburnum 6y agoFinancial institutions (such as hedge funds) borrow money for leverage but the rentier class as a whole are creditors. Raising rates pulls money out of the system but it also gives money to rentiers.