> Since 2008, the Fed has been paying interest on deposits using newly issued currency. That free money will keep entering the economy and cause inflation. The

> Since 2008, the Fed has been paying interest on deposits using newly issued currency. That free money will keep entering the economy and cause inflation. The higher they raise the rates, the more free money will enter the economy. This idea is an example of Neo-Fisherism.[1] It's not really a mainstream view, but Erdogan's central bank has been trying it out (cutting rates to ease inflation).[2] It hasn't exactly worked as he expected.[3] [1]: https://www.stlouisfed.org/publications/regional-economist/july-2016/neo-fisherism-a-radical-idea-or-the-most-obvious-solution-to-the-low-inflation-problem https://www.stlouisfed.org/publications/regional-economist/j... [2]: https://www.economist.com/the-economist-explains/2022/01/27/is-recep-tayyip-erdogans-monetary-policy-as-mad-as-it-seems https://www.economist.com/the-economist-explains/2022/01/27/... [3]: https://tradingeconomics.com/turkey/inflation-cpi https://tradingeconomics.com/turkey/inflation-cpi