(Using interest rates as a tool to curb inflation is the best model that we have.)
Not sure if I agree.
Correct me if I am wrong but doesn’t the way they measure inflation include mortgage repayments and rents. That would mean that to reduce inflation they put up inflation….must be a better way.
GST is not charged on mortgage repayment, food, health and education (the essentials) so why not use the rate of GST as a way to control spending and hence inflation?
The rate of GST is also controlled by elected official not rich business people who are accountable to no one. (Using interest rates as a tool to curb inflation is the best model that we have.)
