Prices in the U.S. Are Rising at the Fastest Pace in Years | Officials at the central bank have embraced the possibility of higher interest rates to get resurgent inflation under control.

silence7@slrpnk.net · 3 天前

Prices in the U.S. Are Rising at the Fastest Pace in Years | Officials at the central bank have embraced the possibility of higher interest rates to get resurgent inflation under control.

dehyzer@piefed.social · 3 天前

This goes against all the hard data we’ve got from the past 80 years of the Fed independently managing interest rates, but yeah dawg, I’m sure your vibes-based economic theory has finally cracked the code that Shadow Emperor JPow has been hiding from us, and all that rampant inflation from 0% interest rates is fake news.

Banana@sh.itjust.works · 2 天前

You’re making a lot of assumptions about how I think here dude. Also i never said that was the only thing that affects inflation.

There are a lot of factors that push and pull. I know there’s a lot of info out there that contradicts what I said but I also know there is a lot of incentive for us to believe that banks increasing rates naturally lowers supply of money in an economy, so of course you’ll find a ton of articles stating that as fact – needless to say I am skeptical.

I don’t know if it’s completely true, just like how the invisible hand of the capitalist economy is assumed to allocate resources effectively, but we know that in practice it does not, because people don’t just choose to stop purchasing things they need when they get expensive.

So my thoughts are this: how much of this theory is based on an assumption of human nature that’s more optimistic than in practice? Because a LOT of our economic theory operates this way.

Prices in the U.S. Are Rising at the Fastest Pace in Years | Officials at the central bank have embraced the possibility of higher interest rates to get resurgent inflation under control.

Prices in the U.S. Are Rising at the Fastest Pace in Years | Officials at the central bank have embraced the possibility of higher interest rates to get resurgent inflation under control.

nytimes.com