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Wonderful. How is monetary policy going to do anything about a lack of supply? There's a shortfall in the wheat harvest due to floods in China, drought in the
by HarryHirsch 5y ago
Wonderful. How is monetary policy going to do anything about a lack of supply?
There's a shortfall in the wheat harvest due to floods in China, drought in the Western US and war in Ukraine, an electronic component shortage due to Covid, chronic underinvestment and again the war in Ukraine, there's a housing shortage in the US due to 15 years of underinvestment, a general stuff shortage due to container shipping disruption - what is a raise in interest rates supposed to achieve?
- vinyl7 5y agoThe fed admitted a few months ago that inflation is not transitory, ie not due to supply chain problems. So this is to help stem inflation, and hopefully fix the insane housing bubble going on right now.