GhostOnTheHalfShell OP ,
@GhostOnTheHalfShell@masto.ai avatar

@economics-that-works

#mmt

I have to wonder if jacking interest rates "fixes" inflation in the sense that improved bank balance sheets allow them to more casually extend business operating credit. In short, it's only through business investment that supply constraints are alleviated.

Interest rates cause inflation from those who can raise prices and austerity from those who cannot.

Banks definitely raise prices.

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