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A comment on Inflation Has Outpaced Wage Growth. Now It’s Cutting into Spending. Parent comment

Re:Inflation Has Outpaced Wage Growth. Now It’s Cutting into... by ralph84 on Sunday July 17, 2022 @04:05PM (#32130693)
We haven’t had runaway inflation like this in the US since the late 70s/early 80s. At that time it did indeed require interest rates higher than inflation to stop it. It took a fed funds rate of 20% to reverse 14% inflation.
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Re:Inflation Has Outpaced Wage Growth. Now It’s Cutting into... by dragontamer on Sunday July 17, 2022 @05:26PM (#32131481)
It's not so much the absolute value of interest rates that matters, as much as the increase or decrease relative to earlier prices that matters.

Going from 1% rates to 2% is in many ways a bigger change than say a 15% to 16% increase.

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