inflation vs. interest, some historical examples of high inflation being overcome with raising interest rates?

Question

im doing a research report on inflation vs. interest and id like to breifly mention some examples of when inflation was lowered by raising interest rates. could you guys suggest some events that i should look up that would help my report?
thanks!

Answer 1

US early 1980's
http://www.applet-magic.com/rec1980.htm

Answer 2

first of all, expectancies are substantial given this is how people plan. If I anticipate costs to circulate up slowly, then i will plan my spending consequently. yet as quickly as I anticipate steep rises in cost, then may well be i'm going to attempt to purchase now to apply later. it incredibly is how expectancies remember. it incredibly is not as lots the point of inflation, however the envisioned levels that stress shopper behaviour. further for the providers whose making plans and budgetting takes into consideration an envisioned cost point. subsequently, people's behaviour could be inspired, by using influencing what they anticipate to ensue. If inflation is greater than ex[ected, yet measures are taken to try against it, and that i've got self assurance those measures will artwork, then i want not exchange my behaviour. subsequently how you could combat inflation could be credible. costs of pastime areone thank you to objective and try against inflation, and the credibility of this tool relies upon on the clarification for inflation. maximum folk anticipate that inflation is by using 'too lots money chasing too few products' this is call for generated inflation. if so, if costs of pastime circulate up, then people discover it extra costly to borrow to finance their intake, call for falls, then the hollow between call for and grant falls, reducing inflation. This became into the case till the 70s. Then got here the oil shocks. The humorous element is that many economists in simple terms utilized the common concept and extra effective costs of pastime, with terible outcomes. The oil ask your self became into as a results of OPEC increasing the cost of oil, subsequently it expenditures extra to offer very virtually each thing. as a results of fact the expenditures of production circulate up, with a view to maintain their revenue, manufaturers advance their costs, and eh presto! inflation. If costs of pastime are extra effective what occurs? optimistic people purchase much less, yet on the different hand, agencies expenditures circulate up lower back. So the result on inflation isn't sparkling, yet what's sparkling is that much less would be transacted on the marketplace - people purchase much less, and providers offering much less at each cost. subsequently you have the beginnings of a slowdown, and may well be even a recession. subsequently, if inflation isn't call for pushed, credibility of costs of pastime as a level is debatable, so increasing costs of pastime want not decrease the inflation value.