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Posts Tagged ‘interest rates’

Why Can’t The Reserve Bank Lower Interest Rates Below 0%?

06 Sep

The reserve bank uses interest rates to keep the economy growing, but not too fast. Without them, we’d go through uncontrolled waves of unemployment (when things slowed down) and inflation (when things sped up). Interest rates are not a perfect tool for this, but they are what we have.

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Better Than Interest Rates

08 Jul

In my past two blog posts, I explained how wage-based inflation is caused by a prisoner’s dilemma contest between millions of wage earners, and how the reserve bank uses interest rates to change the contest to force people to cooperate.

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Posted in Economics