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 the interest rate your own bank charges for a mortgage? And why, when interest rates are so low, are we not seeing the expected level of inflation growth?  Hosted on Acast. See acast.com/privacy for more information.