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West Chazy, New York | Two separate factors in play at once. Increased money supply and decreased productivity will most assuredly cause inflation; that's the market at work. Interest rates are generally pegged to the Fed, although the Fed is also increasing the money supply. It's classic government meddling, primarily intended to delay the consequences of previous actions. There will be inflation, and rising prices will include interest rates. The longer the rates are manipulated, the worse the ultimate reckoning will be. Long term, the market always wins. Always. Unfortunately, for most politicians and bureaucrats, long term is perceived as "until my term in office is completed ". | |
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Can hyper inflation happen without interest rates climbing?
