Yeah before is better than now, but now is better than later.
To your second point, I’m not entirely certain either, but my understanding is that with a high interest rate, it cuts spending which would drive down inflation.
It does this by encouraging people to save (“wow savings interests rates based off of an 80% interest rate!”) And discouraging people from buying\getting loans (“buy a home? With 80% interest?! No”).
With less spending, companies have to begin to drop prices or increase the amount of product offered to encourage buying.
Yeah before is better than now, but now is better than later.
To your second point, I’m not entirely certain either, but my understanding is that with a high interest rate, it cuts spending which would drive down inflation. It does this by encouraging people to save (“wow savings interests rates based off of an 80% interest rate!”) And discouraging people from buying\getting loans (“buy a home? With 80% interest?! No”). With less spending, companies have to begin to drop prices or increase the amount of product offered to encourage buying.