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2025-01-08 03:02:54 UTC
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midway on Nostr: Lowering interest rates has a similar effect to printing money. Both increase demand ...

Lowering interest rates has a similar effect to printing money. Both increase demand which puts upward pressure on prices.

If you really want to bring down inflation, you have to crash the economy to kill demand and let supply catch up. You do that by keeping interest rates high.