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It comes down to reducing the money supply. Increasing interest rates will eventually reduce inflation but it's going to hurt the economy. Another way to reduc
by WheelsAtLarge 4y ago
It comes down to reducing the money supply. Increasing interest rates will eventually reduce inflation but it's going to hurt the economy.
Another way to reduce the money supply is to increase taxes but that's mostly impossible to accomplish so we'll see interest rates rise until we see inflation slow.
- raxxorraxor 4y agoYou cannot really stop if you need to refinance insane amounts of debt. Nearly all developed countries have this problem. The EU sees inflation due to energy but it is also self-accelerated by monetary policies. The ECB tries to be independent from politics but that is not really the case. At least not since a few years and it probably wasn't even independent.