Lyons 1

Interference Day
The Editorial Board
The Economist Magazine
April 13, 2019
Page 11

Bella Lyons
Mr. O’Grady
Contemporary World Issues
April 30, 2019
 Lyons 2

For years, people around the world have grown accustomed to a steady and low inflation

rate, never imagining the worst that could happen. No one has ever thought that the inflation rate

could suddenly skyrocket, until recently, it has. There are many factors that are playing into the

role of inflation. This includes nationalism, populism, and other economic forces that are making

monetary policy both public and political again. This is a problem, because the trouble is starting

all with public promotion, and one of the reasons that the interest rates continue to go up.

President Donald Trump, however, is not taking the right steps to end this crisis. Instead, he is

doing things that are only further provoking the rates and therefore, making them a bigger

problem. Trump has been trying to completely slash the interest rates, and doing other irrelevant

things such as firing the Boss of the Federal Reserve. As the interest rates continue to go up,

more and more people are being blamed for this crisis, specifically, people in power. As a result,

these rulers and leaders are mostly being reelected because people do not think they are qualified

to handle the crisis. Even though many people think that the leaders of countries are at fault, the

central banks are the ones who need to reflect and try and fix this ongoing issue.

This dilemma has been going on for decades, staying steady for certain periods of time,

however, then, skyrocketing. Leaders like Trump are not making the situation better either, and

relying on populism to fix the issue, when in reality, populism is the real problem. Trump is

doing things like trying to please the people by lowering interest rates, but then he ends up

hurting the central banks as a result, making this problem even worse.

Overall, even though the central banks crisis has to deal with many factors including

populism and leaders undermining banks, the true problem at hand is the banks themselves. In

order to fix something this large, we do not need people to interfere and scope out the banks’

activities themselves. This only makes the situation larger, and in turn, interest rates increase.