Opening Word document…
And that could persist because it looks like conventional wisdom — that central bank interest rate increases will crush inflation — is not working.
Why not? The problem that needs to be solved is out of control energy and food prices. To solve it, one option might be to increase the supply of energy and food so much that their prices go down.
In the interim, the profits of energy and food purveyors are soaring as they keep raising prices faster than their costs. Rising interest rates will not solve the production shortages that enable these rage-inducing price increases.
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