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Low Interest Rates being ineffective against Inflation does not imply High Interest Rates are effective against inflation.
by guhcampos 3y ago
Low Interest Rates being ineffective against Inflation does not imply High Interest Rates are effective against inflation.
- MikePlacid 3y agoCan I ask a question that really interests me: why do y’all care?
- hgomersall 3y agoBecause they read some stuff about economics and really really want to believe it.
- rocqua 3y agoSo we can have an informed opinion based on which to vote, and discuss with others to get them to vote more informedly (and in line with what we want).
- MikePlacid 3y agoOur vote is irrelevant once a one-Party system is established.
- Gareth321 3y agoI don't agree. The majority of the OECD practises contemporary monetary policy, using central bank interest rates to control inflation. All of those countries have inflation well below Turkey. Then we have Turkey, rejecting this policy, and experiencing extremely high inflation. Economics doesn't allow us to conduct controlled experiments. We have to work with the messy data that we have. When the vast majority of some of the smartest economists in the world who currently live and who have lived, all agree on principle of supply and demand, I find it compelling. When money is removed from circulation, demand drops. This almost always results in a reduction in prices. Rejecting the law of supply and demand is really out there as a fringe argument.