• zabadoh@ani.socialOP
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    3 days ago

    Like I explained elsewhere in this thread, the economy running a little too hot is the normal case for raising interest rates to slow down the economy.

    When an orangutan is using a ouija board, it seems, to make decisions about the global stability and the economy, this strategy of raising interest rates to deal with fundamentally poor decision-making may not be as effective.

    • CubitOom@infosec.pub
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      2 days ago

      I’m just trying to explain it in simple terms.

      I almost never hear economists explain why rasing rates is supposed to lower inflation. Or why it’s the only tool used to try to combat inflation.

      Every rate increase is a hope that people lose jobs. And it simply isn’t going to resolve our issues.

      • hitmyspot@aussie.zone
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        2 days ago

        Because other options to combat inflation like reducing tariffs, better trade deals and higher taxes are off the table politically in the media.