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Interest rates – do they really control inflation?

Reserve banks spend a lot of time discussing the interplay between inflation and interest rates. In this third episode of the Debunking Economics podcast we look at how the two are inter-related and whether the bond is as tight as Central Banks seem to believe. How does it relate to theinterest rate your own bank charges for a mortgage? And why, when interestrates are so low, are we not seeing the expected level of inflation growth?

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