3 ms·
Interest rates an inflation are cross correlated, they need to be balanced. Without inflation you dollar is still worth the same tomorrow, so you have no incen
by airbreather 4y ago
Interest rates an inflation are cross correlated, they need to be balanced.
Without inflation you dollar is still worth the same tomorrow, so you have no incentive not to just sit on it.
With inflation you are incentivised to invest and take risks to get ahead of inflation.