Australia's largest stock trading and investment forum Australia's #1 stock forum

GOLD

Click for more information

0.51%

$1,391.7 gold futures

If higher rates don't cause higher inflation and vice versa than...

First 44358 Last

Share
Profile

Follow
trent3727

6,227 Posts.

198

18/07/18

20:18

Post #: 34432242
Share

Originally posted by timber1956 ↑

@AverageJoe

I stepped out of the room for five minutes and when I got back everyone is convinced that rising interest rates causes inflation.

Interest payments are a cost, which has to be met from income. If interest bills increase while income remains constant, companies and consumers are forced to reduce other spending. This tends to suppress demand and promotes deflation.

Expand

If higher rates don't cause higher inflation and vice versa than these two charts are big fat liars

Last edited by trent3727: 18/07/18
3 Upvote

0 Great analysis

Reply

There are more pages in this discussion • 82,075 more messages in this thread...

First 44358 Last

Add GOLD (COMEX) to my watchlist