[OC] Inflation rate and nominal interest rateSubmitted by giteam t3_y9padn in dataisbeautiful
LeroyoJenkins t1_it7p60t wrote
Reply to comment by pattydo in [OC] Inflation rate and nominal interest rate by giteam
It depends. When inflation is cross-border, and caused by supply shocks, raising interest rates in a single country isn't enough because consumption is global (such as as with energy). When it is localized, it is strongly tied to local consumption and therefore strongly impacted by interested rates.
pattydo t1_it7qukw wrote
Even every country raising interest rates isn't going to do much for inflation. It's not the 1980s anymore, the economy is changing. Many central banks realize it (like the US), but are raising interest rates anyway because that's the only tool they have.
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