Anonymous
Anonymous asked in Social ScienceEconomics · 1 decade ago

Interest rates question involving Paul Keating era?

Why did the Reserve Bank of Australia set interest rates so high in the late 1980s and early 1990s?

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  • Anonymous
    1 decade ago
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    I'm not an expert on Aussie history, but it would be my assumption that high interest rates in Australia back in the 80s/90s were because of inflation. And the best way to curb inflation is through increasing the cost to borrow money and to slow the economy.

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