If the government or the bank increasing the interest rate to tackle inflation so that people would have less money to spend and the hoping the prices coming down. Wouldn’t it be easy to let people have the money so that they can spend during inflation rather than giving away in name of interest rate?
In: Economics
Plus if you just keep printing money to hand out so people can buy stuff….
Demand stays high, supply can’t meet demand, so prices just keep rising even faster.
And that doesn’t even account for the devalued currency which then wrecks and savings or investments. Since things get more expensive and my saved money means less I should hurry up and spend it…. Which drives up demand even more
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