Increasing the interest rate is supposed to fight inflation.
I often wonder if that really works.
When the risk-free rate rises, doesn't that mean the opposite? That _more_ money will be printed?
When the government says "You give me $100 and I'll give you back more later" - where is this "more" coming from? Isn't it just more debt that will be paid back with more printed money?
I often wonder if that really works.
When the risk-free rate rises, doesn't that mean the opposite? That _more_ money will be printed?
When the government says "You give me $100 and I'll give you back more later" - where is this "more" coming from? Isn't it just more debt that will be paid back with more printed money?