
Interest rate increases do not bite profit-driven inflation. Big capital exploits its strength. Many companies have a monopoly position. They use this to push prices up faster than wages. This is how Big Capital exploits the crisis after Ukraine and the bottleneck effects after Corona. There are now bottlenecks on e.g. economically important semiconductors and other. This means that the production of certain goods does not keep up with the pace of the economy and prevents the production of other goods. This can lead to inflation. Bottlenecks normally occur when the economy is overheated. In 2022, the bottlenecks are not due to too high a demand, but to the lack of production during the pandemic. Then it won't help to throttle the economy and thus production further. Read everything in Robert Reich's column at https://open.substack.com/pub/robertreich/p/the-fed-is-dead
Interest rate increases historically do not control the economy. In addition, higher interest rates risk knocking out large parts of society's production. Many ordinary people will have their household finances crushed before inflation subsides.
Min essay on post-covid inflation shows that post-covid inflation is not due to low- and middle-income earners having too much purchasing power. Society's investments in production are also not too high. Lowering production when there are bottlenecks due to non-production during the pandemic only prolongs the life of the bottlenecks.
The entrepreneurs take advantage of the situation. When one raises prices, the others think they can follow suit. although nothing has become more expensive for them. The electricity market is incredibly mismanaged. The state has let go, and then the electricity companies do what they want.