Re:Federal Reserve raises rates by 0.75%
by ABeeSea on Wednesday June 15, 2022 @03:19PM
(#31758006)
I know simple metaphors for complex problems aren’t great, but I’ve always liked this one:
Think of an economics equilibrium as a guitar string. The harder you pluck it (shock) the longer if vibrates back and forth before reaching equilibrium. Plucking it softer but more often, keeps the string closer to equilibrium across the entire time horizon.
This also applies to things like minimum wage increases.
Think of an economics equilibrium as a guitar string. The harder you pluck it (shock) the longer if vibrates back and forth before reaching equilibrium. Plucking it softer but more often, keeps the string closer to equilibrium across the entire time horizon.
This also applies to things like minimum wage increases.