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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

Consumer prices account for most of the overall inflation and rising pricescan leadthe central bank to raise interest rates

Sebastian ... faster inflation ,may promptthe central bank to raise interest rates

a jump in gasoline prices helped push inflation to its highest level since mid-2001promptingthe central bank to raise interest rates

Something unexpected could happento promptthe central bank to put off raising interest rates

This may eventually lead to strong inflationary pressures again ,leadingto central banks raising interest rates

rising wages which is considered an indicator of rising inflationleadsto central banks raising interest rates

• High inflation and interest rates : inflation shoots uppromptingcentral banks to raise interest rates

the inflation pressureswould causecentral banks to lift interest rates

Surging inflationcan causecentral banks to lower interest rates

runaway inflationtriggeringcentral banks to raise interest rates

Inflation ... the levelmight promptthe central bank to raise interest rates

higher inflationcausesCentral Banks to raise interest rates

a spike in inflationwill causecentral banks to have to raise interest rates

Tame inflationmay leadthe central bank cut interest rates

pressure ... inflationmay promptthe central bank to keep raising interest rates

pressure ... in turnleadscentral banks to raise interest rates

Swiss real estate inflation is beginning to creep upwould ... causea central bank to raise interest rates

high headline inflationshould promptcentral banks to raise interest rates

Later on , this contributes to inflationmay causethe central bank to raise interest rates

High levels of inflationoften resultin a central bank raising interest rates

any material uptick in inflationwould promptcentral banks to raise interest rates

inflation expectations moved uppromptingthe central bank to raise interest rates

higher levels of inflationwould promptcentral banks to raise interest rates

higher costs and prices ... in turnwill leadthe central bank to raise interest rates

stock markets ... the moment when inflation will kick inwill ... triggercentral banks to raise interest rates

These effects encouraged economic growth and inflationleadingthe central bank to raise interest rates

the country 's deficit ... soaring inflationhas promptedthe central bank to raise interest rates

a resurgence of inflation related to the higher food costsmay triggerthe Central Bank to raise interest rates

Vietnam ’s benchmark VN Index ... slowing inflationwill promptcentral bank to cut interest rates

An adverse supply shock pushes inflation up ( Figure 1causingthe central bank to raise interest rates

an appropriate amount of taxes ( fiscal policy ... price inflationhas causedthe Central Bank to raise interest rates

if either the economy returns to robust growth or inflation rises sharplypromptingcentral banks to increase interest rates

However , bond market ( BND ) reacts negatively if , with economic growth , the inflation increasespromptingcentral banks to increase interest rates

real increases in earnings , which is good for their spending power ... strong enoughto promptcentral banks to increase interest rates

Vietnam 's VN Index has fallen 3 percent this year amid concern accelerating inflationwill promptthe central bank to raise interest rates

to rise in the major global economies ,leadingcentral banks either to raise interest rates

The increase in inflation as well as the increase in output above its new steady - state levelcausesthe central bank to raise interest rates

a strengthening global economywill causecentral banks to raise interest rates

which can lead to inflationary spiralpromptingcentral banks to raise interest rates

that country 's currency higherpromptsthe central bank into raising interest rates

even more inflationto createeven more inflation

high inflation by keeping the economy from overheatingto preventhigh inflation by keeping the economy from overheating

inflation from getting out of handto preventinflation from getting out of hand

inflation and deflation firstlyto influenceinflation and deflation firstly

inflation will be put to getcauseinflation will be put to get

to fight incipient inflationdesignedto fight incipient inflation

at near or below zerosetat near or below zero

in a contraction of the money supplyresultsin a contraction of the money supply

to poor returns from income - paying investments like your bank ’s saving account and government bondsleadingto poor returns from income - paying investments like your bank ’s saving account and government bonds

monetary policy and exerts significant control over a country ’s economycreatesmonetary policy and exerts significant control over a country ’s economy

too low for too longbeing settoo low for too long

Execution Zemblanity(passive) Created ByExecution Zemblanity

depression on some occasionsmay preventdepression on some occasions

meetings and announcement timessettingmeetings and announcement times

the government bond markets as well as mortgage ratesheavily influencethe government bond markets as well as mortgage rates

mental health ... nor whether this varies by levels of indebtednessinfluencemental health ... nor whether this varies by levels of indebtedness

in low Government Bond interestresultin low Government Bond interest

to a misallocation of capital and that Central Banks control the money supply via reserve creationleadsto a misallocation of capital and that Central Banks control the money supply via reserve creation

Slaves ” | Macquarie : Central Bank Interest Rate RepressionCreatesSlaves ” | Macquarie : Central Bank Interest Rate Repression

a floor price on investment ( i.e. corporate bondcreatea floor price on investment ( i.e. corporate bond

a floor on equity yields ... if yields get too low , savers prefer to hold moneycreatea floor on equity yields ... if yields get too low , savers prefer to hold money

misdirections of investments into unsustainable activities ( the low rates causing the illusion that funds and resources are more readily available than they really arecausemisdirections of investments into unsustainable activities ( the low rates causing the illusion that funds and resources are more readily available than they really are

to a price gain in equitiesCan ... leadto a price gain in equities

the ability to cut in the case of a downturncreatingthe ability to cut in the case of a downturn

their economy from heating upto preventtheir economy from heating up

panelsettingpanel

investorswill promptinvestors

to risesetto rise

outflowto preventoutflow

History 's Greatest Bubble in bondshas createdHistory 's Greatest Bubble in bonds

to boost the marketdesignedto boost the market

Recessions(passive) are caused byRecessions

recessionmight triggerrecession

stock rally On Nov 22triggeringstock rally On Nov 22

The yield on bonds(passive) is influenced byThe yield on bonds

the interest rate , which acts as a base rate for the interest rates on different types of debtsetthe interest rate , which acts as a base rate for the interest rates on different types of debt

the inter - bank lending ratesetsthe inter - bank lending rate

to further expansioncontributedto further expansion

unknown future problems(passive) caused byunknown future problems

stronglyinfluencestrongly

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Smart Reasoning:

C&E

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