6 ms·
By reducing demand. I guess.
by guyzero 4y ago
By reducing demand. I guess.
- bwb 4y agoThis is it. You trigger a pull back in the economy, if you get lucky you don't trigger a recession. But, if you need to trigger a recession you do it rather than out of control inflation.
- apropos_g 4y agoHow exactly do rising interest rates reduce demand for food? How does it reduce demand for gas? This is what I mean.
- guyzero 4y agoPer other commenters less money in the economy reduces aggregate demand. Per previous inflationary periods where interest rates were raised basically by putting people out of work.