How can interest rates control inflation?
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Contributor(s): Dr Ethan Ilzetzki | Expect central banks to continue to raise interest rates in order to reduce pressures on the economy’s limited supply. With prices continuing to soar in the UK and beyond, LSE’s Dr Ethan Ilzetzki explains how central banks will act on their mandates to keep inflation low. This is the second video in our inflation explainer series featuring insight from LSE researchers.
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How can interest rates control inflation?