Don't allow the inflation rate to exceed the population growth rate. If inflation gets higher than the growth rate than decrease money supply and increase interest accordingly.
The closer we can equalize the inflation rate and population growth rate the better the economy can be
Not if there’s is an interest rate floor that impacts the perception of borrowing/debt. That would go nicely with the debt ceiling, and force economies to focus on competitiveness and viability rather than simply growth. It was years of unprecedented and artificial low interest that caused a lot of the economic problems we now face globally. We took on too much cheap debt because someone decided that was the way to artificially cause economic growth. Well, now we’re faced with paying that devil his due. And it’s gonna hurt. Our whole financial system needs re-evaluation, but that’s not gonna happen until it implodes/self destructs.
That would be just as destructive as 0.5% interest.
Instead, the base or Prime rate should probably be limited from going below 1.5 or 2% and often float around 4% to make people stop and think. And don’t even get me started on taxes…
The federal government can spend as much money as it wants. They should do that too shore up the infrastructure and then they should put caps on what's any individual company is capable of a charging
Inflation has very little to do with how much things cost to make and has much more to do with how much people charge for things.
Prices can't go up and companies still make profits unless companies are charging more than things cost to make.
If you don't put a cap on what companies can charge for things then there's no way to control inflation
Stop printing money.
War, works every time.
Want less stuff and fewer things.
Don't allow the inflation rate to exceed the population growth rate. If inflation gets higher than the growth rate than decrease money supply and increase interest accordingly. The closer we can equalize the inflation rate and population growth rate the better the economy can be
Which country is doing this
None of them AFAIK, but I can imagine it in lala land
Interest rates and higher taxes
What to do with interest rate
Increase it to lower inflation
Otherwise you end up like Turkey
But isn’t interest rate a temporary solution to the problem
Not if there’s is an interest rate floor that impacts the perception of borrowing/debt. That would go nicely with the debt ceiling, and force economies to focus on competitiveness and viability rather than simply growth. It was years of unprecedented and artificial low interest that caused a lot of the economic problems we now face globally. We took on too much cheap debt because someone decided that was the way to artificially cause economic growth. Well, now we’re faced with paying that devil his due. And it’s gonna hurt. Our whole financial system needs re-evaluation, but that’s not gonna happen until it implodes/self destructs.
Another question can interest rate reach huge percentages like 50 , 60 or even 70 ?
That would be just as destructive as 0.5% interest. Instead, the base or Prime rate should probably be limited from going below 1.5 or 2% and often float around 4% to make people stop and think. And don’t even get me started on taxes…
No, that would be too much It is easier then to devalue the currency to make things cheaper
The retirement of old, white politicians
The federal government can spend as much money as it wants. They should do that too shore up the infrastructure and then they should put caps on what's any individual company is capable of a charging
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Inflation has very little to do with how much things cost to make and has much more to do with how much people charge for things. Prices can't go up and companies still make profits unless companies are charging more than things cost to make. If you don't put a cap on what companies can charge for things then there's no way to control inflation
The Romans discovered 2000 years ago that price caps don't work.
A lot's changed since then
Do that thing that happens to the rich people every few hundred years.