Was trying to make sense of this with a friend, but none of us has any theory to work from and just ended up making wild guesses.

Anybody know about this and willing to condense and/or link theory?

  • aworldtowin@lemmy.ml
    3·
    2 years ago

    Hi, I’m very very uneducated in economics and I’m wondering how raising interest rates strengthens a currency? Wouldn’t lower interest rates let people do more and boost the economy? The narrative I’ve read is that printing a bunch of money caused inflation but again I know nothing about economics or how printing money relates to interest rates. So we couldn’t have a zero interest rate system in a capitalist economy if low interest rates are bad? Sorry for the super newbie questions