The Crude Art of Policymaking

The article I have chosen to analyze is from ecomomist.com printed on June 10, 2004. The title of the article is the crude art of policy making. This article discusses weather the central banks should respond to the rise in oil prices by increasing interest rates. It indicates how inflation is on a rise from 1.6% in February to 2.5% in May. It is expected that inflation will rise to over 3% shortly. They blame this rise on inflation …

…from the rest of the world. This pushes the demand curve to the developing economies such as America. With higher demand pushed for goods and oil to be produced in the developed countries this pushes the federal government to increase interest rates soon in order to offset inflation from a growing economy. References Ecomomist.com, (2004). The crude art of policy making. Retrieved February 5, 2005. From: <Tab/>http://80-www.economist.comezproxy.apollolibrary.com