What bothers me more is that there are different underlying mechanisms for - well, different kinds of inflation. Do interest rates really address them all? No.

What bothers me more is that there are different underlying mechanisms for - well, different kinds of inflation. Do interest rates really address them all? No. - "supply chain chaos" is a good excuse to raise prices - artificially limited supply, will raise prices - displaced bond supply, will raise equity prices - world awash in printed money, will raise all prices - interest rates too low, growth too high, raises prices - world conflicts, sure why not And for now there is mostly just one response: raise interest rates. Even that response is somewhat countered by: - "but wait we must re-shore", floods money, will raise prices If you posit that simply interest rates were too low, then sure, all other things being equal, you might raise interest rates and wait a while. Crude but not unreasonable. But what when you have a mess of underlying causes (some of which staggeringly large). Just slightly higher interest rates for a few months doesn't resolve all these other causes. To be fair, it's not all bad: There are still a few now well established deflationary pressures and that's a good thing: - awareness of competition, willingness to compete - "low cost countries" manufacturing - continuing tech advances - willingness to substitute