interest rates without reducing inflation
apart from reducing inflation, for what other reason do we have an increase in interest rates?
We are the central bank for the euro, and it is our mandate to keep prices stable. When prices in our economy are rising too fast – that is, when inflation is too high – increasing interest rates helps us bring inflation back down to our 2% target over the medium term. This is one reason why they have interest rates...But
apart from reducing inflation, for what other reason do we have an increase in interest rates? $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ $Dow Jones Industrial Average(.DJI.US$ $SPDR S&P 500 ETF(SPY.US$ $Invesco QQQ Trust(QQQ.US$
We are the central bank for the euro, and it is our mandate to keep prices stable. When prices in our economy are rising too fast – that is, when inflation is too high – increasing interest rates helps us bring inflation back down to our 2% target over the medium term. This is one reason why they have interest rates...But
apart from reducing inflation, for what other reason do we have an increase in interest rates? $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ $Dow Jones Industrial Average(.DJI.US$ $SPDR S&P 500 ETF(SPY.US$ $Invesco QQQ Trust(QQQ.US$
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BigDickTrader : there are methods such as reduced government spending or increasing taxes to reduce demand. but increasing taxes are just too political, especially if it has to be done hastily