The Guardian view on inflation: way off target | Editorial - 0 views
-
Jack L on 24 Feb 15This article talks about how the guardian feel that George Osborne has failed to achieve a satisfactory inflation rate. There is an inverse relationship between inflation rate and aggregate demand. If interest rates are high then there is an increase in the cost of borrowing for the consumer. As well when interest rates are there is a higher return from savings in banks.