Wednesday, November 16, 2011

The Relationship Between Interest Rates and Inflation

Everything in an economy in interlinked with each other and in a broad sense the economies of the earth are linked with each other as well. Countries export and import with each other and this is why if one nation has a difficulty in its economy the other nation will get affected as well. Just gaze at how the whole earth felt the ripples of the effect of the collapse of the US housing market. This phenomenon is known as the ripple effect or the multiplier effect. Likewise, interest rates and inflation both are very strongly linked. More information: read more about

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