Post
Topic
Board Economics
Re: Recession? How to face It?
by
pawel7777
on 25/10/2023, 22:18:16 UTC
It is happening in every country but for a very few, they're able to slow it down but they can't escape inflation.
(...)

Actually, most of the countries (at least the Western ones) have been able to reduce the rate of inflation with increased interest rates. The problem is that increasing interest rates have a negative effect on the economy and can lead to many undesirable things like e.g high unemployment. So if not done carefully, it's just like replacing one problem with another.
That's why, in the past, we'd often see that recessions actually came in pair with deflation.