- 15 Sep 2023 17:46
#15286980
Agreed. Even the Fed doesn't, instead it talks about inflation expectations (and keeping them anchored) and having a "data dependent policy"
With an inflation below 0.1%, chances are that increasing interest rates would make it turn negative (i.e. cause deflation).
I otherwise agree.
Steve_American wrote:1] IMHO, then, it is kind of useless to even talk about them.
Agreed. Even the Fed doesn't, instead it talks about inflation expectations (and keeping them anchored) and having a "data dependent policy"
Steve_American wrote:2] Actually inflation can't be less than 0%, because then it is deflation.
Anyway, I suppose that if unemployment was over 60%, I doubt interest rate increases would have any effect. Of course, that rate is twice the worst the US has ever had.
And also, if inflation was less than 0.1%, I doubt that interest rate increases would have any effect.
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With an inflation below 0.1%, chances are that increasing interest rates would make it turn negative (i.e. cause deflation).
I otherwise agree.