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to fight inflation you raise interest rates, so that citizens spend less and save more. by cutting interesting rates they are encouraging spending, and increas
by systems 17y ago
to fight inflation you raise interest rates, so that citizens spend less and save more.
by cutting interesting rates they are encouraging spending, and increasing inflation!
they can of course just move their saving elsewhere (another country) where rates are better! Which is what I would do, at least in the short term!
- jacquesm 17y agoyes, like Iceland. Oh, wait...