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  • Monetary policy

Click to read the article below and then answer the questions:

ECB raises interest rates to all-time high

  • When economic growth is slowing, how do central banks typically adjust interest rates? Why?

  • How does the ECB’s recent action compare with your previous answer?

  • Why is the ECB continuing to raise rates? Describe the chain of responses that the ECB is hoping will happen

  • What was inflation last August compared to this August? How does that compare to the ECB’s target inflation rate?

Ariel Slonim at MRU Econinbox

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