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.<p>- "supply chain chaos" is a good excuse to raise prices<p>- artificially limited supply, will raise prices<p>- displaced bond supply, will raise equity prices<p>- world awash in printed money, will raise all prices<p>- interest rates too low, growth too high, raises prices<p>- world conflicts, sure why not<p>And for now there is mostly just one response: raise interest rates. Even that response is somewhat countered by:<p>- "but wait we must re-shore", floods money, will raise prices<p>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.<p>To be fair, it's not all bad: There are still a few now well established deflationary pressures and that's a good thing:<p>- awareness of competition, willingness to compete<p>- "low cost countries" manufacturing<p>- continuing tech advances<p>- willingness to substitute