| ▲ | pipes 3 days ago | ||||||||||||||||
The raising interest rates right now makes no sense to me. Energy prices and layoffs will kill spending power. I think the central banks will overcompensate because they got inflation so wrong the last time. | |||||||||||||||||
| ▲ | mswphd 3 days ago | parent | next [-] | ||||||||||||||||
inflation has been persistently > 2% (and arguably much more, as the current methodology on how to measure inflation is quite flawed). There's a definite risk of inflation expectations shifting, which central bankers really want to avoid. Your point that there's a recessionary risk is real, but lowering rates might lead to stagflation. Both options are pretty bad honestly. | |||||||||||||||||
| ▲ | altmanaltman 2 days ago | parent | prev [-] | ||||||||||||||||
Can you elaborate on what you mean by "central banks got inflation so wrong the last time"? You mean Covid or 2008? | |||||||||||||||||
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