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There are a huge number of ways to fight inflation. You can do wage and price controls. You spend money to increase supply. You mandate this and create a law
by hackeraccount 4y ago
There are a huge number of ways to fight inflation. You can do wage and price controls. You spend money to increase supply. You mandate this and create a law that does that. You could reduce the money supply with tax increases. All of those things are politically tricky. Each has a constituent that likes it and one that opposes it.
Here's the thing though - none of those ways works. The way that works isn't politically tricky it's politically toxic. Raising interest rates works. It will ultimately piss off just about everyone but if you really want to cut inflation it's the only way to do it everything else is just politicians doing politics.