> There is a suspicion in MMT that issuing bonds and high interest rates could be actually inflationary because the interest payment of that bonds. A long-term

> There is a suspicion in MMT that issuing bonds and high interest rates could be actually inflationary because the interest payment of that bonds. A long-term increasing interest rate (especially at a low absolute level) ought to push inflation from income-producing assets to other things, because rising interest rates would undermine the reason for buying the claim on future income. I think that's backed by theory and empirical evidence from the 70s, and simply amplifies how tenuous the macro financial situation has become. Even more alarming, the Fed thinks the lever to reduce inflation is interest rate increases ... which as noted at some point in the rate-raising process should shift asset inflation into consumer inflation, which would beget more raises.