This is why I think raising interest rates to deal with inflation rather than working on increasing supply / reducing supply bottlenecks is absurd. Making money

This is why I think raising interest rates to deal with inflation rather than working on increasing supply / reducing supply bottlenecks is absurd. Making money cost more isn’t reducing inflation, it’s reducing supply’s ability to produce while reducing demands ability to finance by making everything more expensive. That’s a dumb way to treat supply scarcity relative to demand - which is what makes inflation happen. The other way is reduce interest rates further and invest heavily in infrastructure and production targeting areas of specific demand. You might see a short term spike in inflation as more money enters pocketbooks but you’ll also see a dramatic drop as supply floods the market in response. The wild card is housing, but making it more expensive to finance construction or purchase, interest rate hikes don’t help that either. It just makes more homeless.