Raising Interest Rates May Cause Global Recession
Mark Trumbull, The Christian Science Monitor | July 2, 2008
With European inflation at its highest ever since the introduction of the euro, many countries are tightening their credit reins in an effort to curb inflation. ++ The world’s central banks are slowly realizing the magnitude of the inflationary threat. ++ It is expected the European Central Bank will raise its interest rates tomorrow, US Federal Reserve also faces greater pressure to raise interest rates and is considering a tighter policy. ++ Synchronized tightening by American, European, and emerging economies might cause a global recession.
