bernanke gives market a head job ..., page-20

farsight,

just out of interest, when inflation is caused by (& using Australia as an example) 1) energy induced 2) drought, how does putting up interest help. You say that "responsible economies" will put up interest rates to combat inflation. Doesn't make sense to me, or am I missing something.

Imo the rates in the US were reduced only to help people with mortages and it just shows how irrational the markets are when they have rallied on that interest rate movement.