Here's my try:
- Unlike popular perception, money is not created by "printing it". Money is created, or the supply of money is added to, when entities (corporations, institutions, people) borrow money from a bank.
- When interest rates go up, the cost of borrowing goes up because you have to pay back more over time.
- When the cost of borrowing goes up people borrow less.
- When their is less borrowing their is less money in the economy. Less of a currency trying to purchase the same amount of goods lowers prices.
- When interest rates go up, the cost of borrowing goes up because you have to pay back more over time.
- When the cost of borrowing goes up people borrow less.
- When their is less borrowing their is less money in the economy. Less of a currency trying to purchase the same amount of goods lowers prices.