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Will Janet Yellen Pull the Trigger? | Andy Constan
Forward Guidance
The Demand Sides of the Wage Price Spiral
If it's a demand driven price increase prices are going up because companies are able to increase prices. That means profits are going up. What does that mean for their desire to build their company by hiring another worker? The only way they can seize on it is buying their input costs for their product. And so the borrowing demand increases and that creates higher interest rates. But that's just, you know, the way the business cycle works.
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