There’s No Quick Fix For Our Energy Inflation Problem ...Middle East

OILPRICE - Economy
There’s No Quick Fix For Our Energy Inflation Problem
source : OILPRICE ( Middle East ) () 40
There is a reason for raising interest rates to try to fight inflation. This approach tends to squeeze out the most marginal players in the economy. Such businesses and governments tend to collapse, as interest rates rise, leaving less “demand” for oil and other energy products. The institutions that are squeezed out range from small businesses to financial institutions to governmental organizations. The lower demand tends to reduce inflationary pressure. The amount of goods and services that the world’s economy can produce is…

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