a: raising interest rates ~
b: stopping a train

What:

"Keeping inflation under control by raising interest rates is like stopping a train, in that it takes a lot of lead time to do so. Since it takes time for an increase in interest rates to reverberate through the broader economy, the Bank has to raise interest rates long before inflation shows signs of threatening to breach the Bank's inflation target."


Useful?
Writer: Gregory Klump
LCC:
Where:
Date: May 27 2016 6:23 PM


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