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Actually, once Interest rate raises, deflation will come.

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  • 1 Post By gtwace
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Old 17-09-2018, 12:40 AM   #1
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Join Date: Jan 2001
Posts: 8,891
Actually, once Interest rate raises, deflation will come.

salary remains the same but interest rate increase, means ppl can't borrow as much as before, as the amount of interest they can pay depends on their salary. With the tightening of money flow, and spending power, everything will have to decrease in price in order to create demand.
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