The Bear Room, page-1181

I spoke with a hank economist recently who got a little heated (on the gas lol) talking about the events of 1972 which ultimately caused the mega rates of the 1990s and broke the world economy. Well before my time, but there was mega inflation which caused pain, central banks eased rates to ease the pain, inflation increased and they kept the cycle going until the 1990s. He believes central banks are keenly aware that until inflation is defeated there will be no rate cuts, nor are they needed. In Aus households are doing it tough but there is a shortage of labour and production so if rates were reduced inflation would increase. In the US households have record amounts to spend and the economy is on fire so there is no no need to reduce rates.