Inflation - Introduction
In this section
What Is Inflation? |
What Causes Inflation? |
What Is Monetary Policy For? |
Why Do We Want Stable Prices? |
How Do Interest Rates Affect Inflation?
Monetary policy is about setting interest rates to control inflation. It sounds straightforward enough. But to undertake the Interest Rate Challenge, participants will need to have some understanding of what inflation is and how it occurs. And they will need to know how interest rates are used to control inflation - how monetary policy works. This section provides some background to set teams on their way. There is no need to know all the material back to front. The aim is to give teams a flavour of what matters when interest rates are set.
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