Why do Central Banks persist in using interest rate policy to control inflation?
24/09/2023
“A policy that targets the young and the poor to solve an economy wide problem is neither equitable nor long-term efficient“ John Mangan Introduction The Reserve bank of Australia has a target range for consumer price inflation of between 2-3%. This target level is shared by many central banks including the US Federal Reserve , to achieve these inflation targets Central banks primarily use monetary policy, particularly interest rate policy. This creates two connected macro- economic issues. What is the optimum inflation rate
