點解增加利率就可以打擊通脹?

當利率低, 人們不會放錢在銀行存款/定期存款, 而投資者會由於低利率, 借貸投資股市,地產, 匯市等, 由於炒賣,令物價上升, 引起通脹, 加息令借貸的成本上升, 若借貸成本令投資回報下跌, 風險上升, 便會減少借貸/炒賣, 便可打擊通脹
像日元低息,引起外國大量借入,

If R increases
1. Consumption drops because the cost of buying increases. Price level --> drops
2. Investment drops because the cost of borrowing money increase. Price level--> drops

one important knowledge about interest is that ...all interest rate is interrelated..
for example, the mortgage interest rate (prime rate), discount rate, saving interest rate.

Since there is a increase in one interest by the FEDERAL government, all other interest rate will also follow !

2007-12-01 00:09:48 補充：
Government can also use other measures to tackle inflation1. Upper the required reserve ratio 2. Upper the discounted rate3. Lower the Money Supply 4. Open Market Operation ( Open Market Sell)

because利率is increase than, more ppl will put money to the bank
so that in the market will be be more cash money!
so that can be打擊通脹