Economics, Econometrics and Finance
8 years ago

Higher interest rates may actually lead to higher inflation rates!

Journal of Guangzhou University
An Empirical Analysis of the Relationship between Interest Rate and Inflation Rate
Deng Hong

Paper Summary

Related papers

Economics, Econometrics and Finance
4 years ago

Interest rates fail to adjust to inflation, impacting global economic stability.

Macroeconomic Analysis
Macroeconomic Trends
1 view
Economics, Econometrics and Finance
4 years ago

Monetary Policy Linked to Unemployment Rates in Groundbreaking Study

Monetary Models
Macroeconomic Trends
Macroeconomic Analysis
2 views
Economics, Econometrics and Finance
4 years ago

Nigeria's Interest Rates Linked to Inflation, Urging Shift in Monetary Policy

Macroeconomic Analysis
Infrastructure Impact
Macroeconomic Trends
2 views

Interest rates and inflation rates are thought to be inversely related, but in reality, higher interest rates often lead to higher inflation. By using a black-box method, researchers found that at a macro-level, nominal interest rates and inflation rates are actually positively linked. This has been supported by historical evidence, suggesting that the traditional understanding of adjusting monetary policy needs to be revised over time.