Are We Stuck Between Hyperinflation And A Recession?
Economics Explained
00:00
Can the Fed Really Fix Inflation?
High interest rates will put a damper on business and consumer activity. Government has to be very careful about this, because the fed may still have to reverse course if the economy falls into a recession. Most of the things that the government and reserve bank due to fix inflation is exactly the opposite of what they do to fix a recession. If an economy has inflation that is too high, the central bank raises interest rates and the government taxes more while spending less.
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