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With the recent fallovers and subsequent bailouts of 5 American banks, largely due to the rising interest rates damaging the profitability of their government bond holdings, we are left with two bad choices: raise interest rates to fight inflation and cause more banks to fall over or lower rates to protect the banks and supercharge inflation?
By Jason von Kanel and Alex von KanelWith the recent fallovers and subsequent bailouts of 5 American banks, largely due to the rising interest rates damaging the profitability of their government bond holdings, we are left with two bad choices: raise interest rates to fight inflation and cause more banks to fall over or lower rates to protect the banks and supercharge inflation?