Hard to say that interest rates are really what dampens inflation. Inflation dampens inflation if you're not pouring money in the other end. Why people are so convinced that rates drive inflation I don't think I'll ever understand.
Hard to say that interest rates are really what dampens inflation. Inflation dampens inflation if you're not pouring money in the other end. Why people are so convinced that rates drive inflation I don't think I'll ever understand.
I think the "if you are not pouring money in the other end" answers your question? Lowering interest rates is pouring money in.