Can you explain it to me because I’d love to know more. My base assumption is if the US had a spike in food prices would they not dramatically increase interest rates, until food prices deflated?
Rising rates would then drop their current asset bubble due to a contraction in money supply. Hence it could be seen not to be as much a tax as it would be a large amount of pain for existing asset holders who hold nominally valued assets, which would mainly be the rich?
Another assumption I’d make is higher inflation would also lead to a lower unemployment and greater wage pressure, due to the phillips curve?
I’m no economician, but 1. this price hike has nothing to do with inflation, and 2. Interest rates aren’t used to bring prices down, they’re used to bring inflation down.
The price hike causes inflation, as the tariff is passed on to consumers. Interest rates control the growth in the money supply, with less physical money available the velocity of money slows and prices fall, which causes deflation.
It’s incredible how people just don’t understand how tariffs work, but believe an aging man with early onset dementia’s and wears a diaper.
Early-onset? He is 78
he’s one of their peers, at least in the ‘education department’.
“Donald Trump was the dumbest goddamn student I ever had.” - William T. Kelley, Marketing Professor, Wharton School @ UPenn
Lmao
That worked sooooo well for him. 🤣
Education ends after birth in murica
Yep, Republicans have spent decades dismantling public education brick by brick and MAGA is the end result.
Education comes from the Fox News channel in 'murica.
Can you explain it to me because I’d love to know more. My base assumption is if the US had a spike in food prices would they not dramatically increase interest rates, until food prices deflated?
Rising rates would then drop their current asset bubble due to a contraction in money supply. Hence it could be seen not to be as much a tax as it would be a large amount of pain for existing asset holders who hold nominally valued assets, which would mainly be the rich?
Another assumption I’d make is higher inflation would also lead to a lower unemployment and greater wage pressure, due to the phillips curve?
I’m no economician, but 1. this price hike has nothing to do with inflation, and 2. Interest rates aren’t used to bring prices down, they’re used to bring inflation down.
The price hike causes inflation, as the tariff is passed on to consumers. Interest rates control the growth in the money supply, with less physical money available the velocity of money slows and prices fall, which causes deflation.