4 ms·

The difference between nominal and real interest rate is inflation and the main mandate of Central Banks is the control of inflation. So, I don't think it's acc

The difference between nominal and real interest rate is inflation and the main mandate of Central Banks is the control of inflation. So, I don't think it's accurate to say they have no control.

lottin 5y ago
Central banks control inflation by setting nominal rates. These two rates are not independent. Setting real interest rates would require the ability to control both nominal rates and the inflation rate independently from one another.
- RobertoG 5y ago
  I think we agree on everything.