• theparadox@lemmy.world
    link
    fedilink
    English
    arrow-up
    7
    arrow-down
    3
    ·
    1 year ago

    I don’t think low rates caused inflation, and I don’t think high rates were to lower inflation.

    Inflation resulted from supply chain issues and businesses believing (correctly) that they could raise prices beyond their increased costs and rake in additional profit, all while blaming inflation.

    High interest rates were to punish labor - to raise unemployment in order to prevent labor from obtaining enough power to demand better pay and better conditions.