Going directly to the rote monetarist playbook in an effort to reduce nascent "inflation". Same thing will happen ANYWHERE "inflation" is ever thought to develop. Will not help the situation in fact will probably make "inflation" be interpreted as more of a problem going forward.
Egypt’s central bank raised its key interest rate by the most since at least 2006 https://t.co/PiC5vWez5N
— Bloomberg Markets (@markets) March 17, 2016
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ReplyDeleteInflation goes up as the new risk free rate in forward pricing formulas is higher.
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