Finally, IT policies, by raising interest rates, attract capital inflows due to the higher rate of return on financial assets, leading to currency appreciation and downward pressure on exports, growth, and jobs. This view is based on the premise that workers, observing price increases, accentuate their demands for higher pay, triggering an inflationary spiral. Inflation targeting is meant to harness inflationary expectations and avoid such a spiral. Inflation targeting adherents theorize that low inflation will stimulate investment and output growth in the medium-to long-term. Thus, it is assumed that unemployment costs as a result of higher interest rates and slower growth are only temporary.