Street-Individual292 t1_it7xd5u wrote on October 21, 2022 at 4:08 PM

Reply to comment by pattydo in [OC] Inflation rate and nominal interest rate by giteam

It’s not that interest rates won’t help inflation, it certainly will. It’s just not as efficient as certain supply stimulus when inflation is drawn from a drop in output instead of an increase in consumer demand.

The demand side can still be manipulated to help though, which is why the fed is still raising rates

pattydo t1_it7y8jx wrote on October 21, 2022 at 4:14 PM

I'm not trying to say that it won't help at all, it will just won't be much. And will almost certainly be more harm than good. And yeah, there are way better ways to help.