William Charles Simpson
Economics

Inflationary Interest

Infationary interest is the amount interest contributes to inflation. Interest can and does cause inflation. If a central bank of a nation raises interest rates not too much, the interest will be added onto the price of products. The also causes a creeping price inflation increase. If the small interest rate increase continues, the loans and price increase and creeping price inflation increase continues. When fighting inflation, a central bank of a nation has to raise interest rates very steep and very fast or there will be more inflationary interest. William Charles Simpson 1st Write: Jan 12, '04 Santa Cruz, CA, USA

WCS Home Economics © 2003 wcsimp@hotmail.com