"the central bank is attempting to control inflation by raising and lowering the policy rate."
I am increasingly struggling to find empirical evidence that this actually works, but I suppose for investment purposes it is sufficient that most market participants (and central bankers themselves) believe that it does?
"the central bank is attempting to control inflation by raising and lowering the policy rate."
I am increasingly struggling to find empirical evidence that this actually works, but I suppose for investment purposes it is sufficient that most market participants (and central bankers themselves) believe that it does?
Yes. I don’t want to derail the section with that discussion, which probably shows up elsewhere in the book.