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Yes, but you don't want to deflate for other (often worse) reasons. So could they raise interest rates to 10% and kill inflation? Easily. The trick is in raisin
by peripitea 4y ago
Yes, but you don't want to deflate for other (often worse) reasons. So could they raise interest rates to 10% and kill inflation? Easily. The trick is in raising them to the appropriate level to curb inflation without suffocating the economy.
- jessaustin 4y agoThey have already raised rates enough to suffocate the economy; this episode is just one example. They have not raised rates enough to kill inflation, because the inflation we're seeing today is due to input costs and monopoly rents. The interest rate could be 15% and it wouldn't change those facts. The real reason interest rates are rising is to kill the infant unionization trend in its crib. SVB is just collateral damage.