EPISODE · May 17, 2022 · 2 MIN
Should we not just let inflation go a bit? (how bad is 6% anyway?)
from Die ekonomie minuut · host Waldo Krugell
I said yesterday that a repo rate hike will not make a difference to the oil price, or rising food prices, but it is also the Reserve Bank's most tool for fighting inflation. It works by curbing consumer spending and reducing investment, and finally, businesses realize that they cannot pass on cost increases to consumers, and then inflation will stabilize. Shouldn't we instead allow a bit of inflation until things have normalized in the international economy? * The Economics Minute is supported by the NWU Business School.
What this episode covers
I said yesterday that a repo rate hike will not make a difference to the oil price, or rising food prices, but it is also the Reserve Bank's most tool for fighting inflation. It works by curbing consumer spending and reducing investment, and finally, businesses realize that they cannot pass on cost increases to consumers, and then inflation will stabilize. Shouldn't we instead allow a bit of inflation until things have normalized in the international economy? * The Economics Minute is supported by the NWU Business School.
NOW PLAYING
Should we not just let inflation go a bit? (how bad is 6% anyway?)
No transcript for this episode yet
Similar Episodes
Dec 30, 2024 ·19m
Dec 30, 2024 ·24m
Nov 19, 2024 ·18m
Nov 6, 2024 ·20m
Oct 23, 2024 ·15m
Oct 9, 2024 ·20m