4 ms·
Not at all. In a debt-based economy, rising rates put downwards pressures on capital distributors, since they have to get more than the fed rate back on any inv
by arnorhs 2y ago
Not at all. In a debt-based economy, rising rates put downwards pressures on capital distributors, since they have to get more than the fed rate back on any investment/loan. Higher rates -> reduced money supply -> increased unemployment -> reduced demand => lower inflation.
While lower rates -> reduced unemployment -> increases market demand -> raised prices = increased inflation