We had a long period of low interest rates with low inflation. Inflation was quite stable over this period, with the exception of housing inflation (which is not included in the CPI data).
Can someone explain it to me plainly? ALSO, I’m wondering if it works vice versa – does lowering interest rates lower the exchange rate?
Explain to me how an increase in the price level changes interest rates. How does this change in interest rates lead to changes in investment and net exports?
I really don’t get this. At the moment, most inflation is directly or indirectly related to the price of fuel. Many people do not have mortgages and have enough money to support themselves without using credit. How can the reserve bank continue to assume that interest rates will control inflation when, rate rise after rate [...]
My son is a college freshman. He has a FDSL loan of $3500 and a student loan from a bank/Great Lakes Educ for over $2500. Will his loan interest accumulation fluctuate with the changing interest rates? Are the drops in the interest rates which we are hearing about on the news of any benefit to [...]