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Rate hikers fear another 1978 even as 2008 comparisons get louder by the week.

Eurodollar University

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The Nonlinear Relationship Between Rates and Inflation

Jeffrey Toobin: It's like they've got this lever that says, okay, for every one rate hike, the CBI has to go down. And if it doesn't move at all, they think, well, then we need to do this many rate hikes and then inflation should go down by this much. That's not how an economy works. Even if the rate hikes were effective, they shouldn't expect there to be a linear relationship. This number of rate hikes means this level reduction in consumer price numbers.That's not how it works. In fact, history has shown repeatedly that when we go through the supply shock instances...Toobin: We're going to continue to believe

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