Has inflation bottomed?

Discussion in 'Trading' started by Innervoice, Feb 14, 2023.

  1. TheDawn

    TheDawn

    Tbh I don't think raising interest rates to double-digit levels is the answer to reducing inflation. The current cause of inflation is not an overheating of the economy where raising interest rates to double-digit levels would be effective to cool it down thus bringing down inflation. The current cause of inflation is overprinting of money + a drastic reduction of productivity caused by an unforeseen pandemic. So the remedy for that is raising interest rates to reduce the money supply and at the same time increase productivity but increasing productivity by making people work and investing in new technology like robotics is more important. You do not want to increase the interest rate so much that you choke off liquidity to the point that companies cannot invest to create jobs and/or develop new technology.
     
    #21     Feb 16, 2023
    jys78 and semperfrosty like this.