> how much of the inflation is caused by lack of supply for relatively inelastic commodities. If the way out of shortages is to invest in more production, highe

> how much of the inflation is caused by lack of supply for relatively inelastic commodities. If the way out of shortages is to invest in more production, higher interest rates seems detrimental in the face of that type of inflation I'm no economist, but is it really a problem in practice? Shouldn't stuff with both high prices and inelastic demand be a really attractive target for investment? If you can produce that stuff (before the situation changes), you're almost guaranteed to be able to sell it and at a high profit. So getting capital for it should be relatively easy. I'm sure higher interest rates will have some effect, but it seems like it wouldn't be enough to discourage investment that much.