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That's the inherent nature of the interest rate. Both unemployment and inflation have bad consequences, so the role of the central bank is to balance rates to t
by Hammershaft 1y ago
That's the inherent nature of the interest rate. Both unemployment and inflation have bad consequences, so the role of the central bank is to balance rates to target a specific inflation rate.
- bobson381 1y agoand inflation can continue forever! no problems with that at all, the economy is definitely built on money and not a finite supply of resources constrained by entropy.
- Hammershaft 1y agoI actually don't see a problem with that because what is useful information in a price system is the relative price of things, not the absolute price, which is arbitrary.