Currently, the FRB sets the one day rate that banks charge to each other to control the inflation. Why can’t they use other ways also like printing more dollars, modulating minimum wage, modulating the gas prices, or modulate the amounts subsidized for the farm sector?
If raising minimum wages and gas prices can increase the inflation, then why can’t we use that as a way to control the inflation rate to begin with?
byu/Lucky_Durian1534 inAskEconomics
Posted by Lucky_Durian1534