4 ms·
Isn't that sort of the point of raising interest rates? Makes debt more pressing to slow down money velocity and loan creation? (Thus curbing inflation). Sure,
by mostly_harmless 5y ago
Isn't that sort of the point of raising interest rates? Makes debt more pressing to slow down money velocity and loan creation? (Thus curbing inflation).
Sure, if you push the rates too high, you'll hit deflation, but the point would be to strike the balance before that happens.