Jan 23, 2022
The problem both politicians and the central banks have is that they have the relationship between inflation and rates 180 degrees backward. How does increasing the cost of doing business while also pumping more money into the economy do anything to curb inflation? All that is accomplished by raising rates is stifling employment while also bolstering profit for banking. The natural rate for a free floating currency should always be zero and anything above that can only further advantage the already wealthy.