Debate: Inflation: are increased rates of interest the answer?
The worldwide development in the direction of increased rates of interest may stifle financial development, writes Die Zeit:
“Ninety central banks worldwide have already raised their rates of interest this yr. … Though every establishment makes its resolution primarily based on the scenario in its personal nation, the cumulative worldwide reversal of the low rate of interest coverage of the previous decade may unintentionally amplify the influence of rate of interest hikes. And it may ship the worldwide economic system right into a deeper trough than the central banks meant. In any case, their aim was to decelerate the economic system with out smothering it solely. However central bankers not often handle this balancing act, even underneath significantly better situations.”
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