Raising interest rates is a razor-sharp, double-edged sword. It decreases demand-pull inflation, while it simultaneously increases cost-push inflation. And too high interest rates cause recessions and financial crises. And it is NOT corrective for the type of inflation we have currently, which is a result of global supply shortages induced by the panic-demic and lockdowns, combine with foolishly trying to paper over the predictable shortages with printing trillions more money (i.e. stoking demand when supply is constrained).
Raising interest rates is a razor-sharp, double-edged sword. It decreases demand-pull inflation, while it simultaneously increases cost-push inflation. And too high interest rates cause recessions and financial crises. And it is NOT corrective for the type of inflation we have currently, which is a result of global supply shortages induced by the panic-demic and lockdowns, combine with foolishly trying to paper over the predictable shortages with printing trillions more money (i.e. stoking demand when supply is constrained).