3 ms·
We haven’t had runaway inflation like this in the US since the late 70s/early 80s. At that time it did indeed require interest rates higher than inflation to st
by ralph84 4y ago
We haven’t had runaway inflation like this in the US since the late 70s/early 80s. At that time it did indeed require interest rates higher than inflation to stop it. It took a fed funds rate of 20% to reverse 14% inflation.
- dragontamer 4y agoIt's not so much the absolute value of interest rates that matters, as much as the increase or decrease relative to earlier prices that matters. Going from 1% rates to 2% is in many ways a bigger change than say a 15% to 16% increase.