Will higher inflation force central banks to raise rates? – Not A Yes Man Economics

Jan 04, 2017, 12:02 PM

Inflation is raising its ugly head across the advanced world. The textbook says higher inflation is usually countered by the central banks via higher interest rates.

With inflation spiking in UK and Germany, speculation is on the rise whether rates would go higher in 2017.

In this segment, we talk to Shaun Richards from Not A Yes Man Economics blog who explains the inflation and interest rate dynamics.

Listen to the full segment to know if the textbook rule of higher inflation = higher interest rates still holds true in this new normal era.

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