That assumes interests rates are set by the free market, which is not true in to... | Hacker News

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		gizmo686 on Sept 19, 2022 \| parent \| context \| favorite \| on: The anti-inflation pivot of 2022 That assumes interests rates are set by the free market, which is not true in todays economy. The reason interest rates are going up is not a mystery. A dozen people meet semi-quarterly and vote on what the interest rate should be.

colinmhayes on Sept 19, 2022 [–]

I’m not sure your point contradicts the hypothesis though. Stability is the whole point of macroeconomic policy, and central bankers instituting a high interest rate is absolutely a sign that they believe some instability is coming.

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