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Their goal is to reduce inflation. Increasing unemployment, is a side effect of rate hikes but ultimately, reduces demand for consumer goods thus reducing infla
by stingrae 4y ago
Their goal is to reduce inflation. Increasing unemployment, is a side effect of rate hikes but ultimately, reduces demand for consumer goods thus reducing inflation.
- seanmcdirmid 4y agoTheir goal is to keep inflation steady at a manageable rate, and to prevent any deflation at all. Since inflation indicators haven't been too reliable in the last 20 years, they were caught horribly off guard. But ideally, they would make small changes one way or the other to maintain a nice equilibrium that would keep employment levels relatively stable.
- stingrae 4y agoTrue in the ideal case.
- hajile 4y agoInflation in staple supplies and food are radically inflated too and they aren’t reducing when people go on unemployment.