I’m not very experienced with complex nuances of Economic systems, recently I saw the news say that the US gov will raise interest rates to slow inflation. I don’t much about interest rates, but I’ve heard an argument from the left (not sure who) that inflation can be solved by dealing with unemployment or with interest rates and I think the person was arguing in favor of dealing with unemployment. But what happens when interest rates are raised or lowered? And what is the affect on inflation? What happens to wages and benefits? Sorry it’s probably a lot of questions but any help would mean a lot, I wanna understand the current economy from a Marxist perspective

    • ButtigiegMineralMapOP
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      22 years ago

      This is a great answer, thanks. I kinda get the argument that it slows spending and thus inflation. It also makes sense that they are doing it in accordance with Blinken saying they wanna focus the Fed on driving down wages. Lowering wages, in conjunction with raising interest sorta squeezes people into spending less