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This is your daily reminder that there is no theoretical reason to do these monthly small hikes. Except to keep pretending everything is still fine I guess. Ru
by tryptophan 4y ago
This is your daily reminder that there is no theoretical reason to do these monthly small hikes. Except to keep pretending everything is still fine I guess.
Russia hiked by 9% in a day and it helped stabilize things quickly. We need to hike to 6% and be done with it, no more of these games pretending things are fine.
- junofan 4y agoThere’s an election coming up.
- pid-1 4y agoThe reason is nobody knows the correct rate to stop inflation and nobody wants to drive rates too much, as that also would have bad consequences.
- whywhywhydude 4y agoI don’t think it’s that simple. Very high monthly mortgage payments will massively reduce demand for new housing. Will bring all new construction to a complete stop. And then layoffs in the construction industry. But the worse thing is it won’t bring the rents down because no new houses are being built.
- lamontcg 4y agoIt'll bring rents down because people who lose their jobs won't be able to afford those rents and will get evicted.
- slaw 4y agoThe reason is government needs to print out of debt. That's why transitional inflation is permanent.