Fears of inflation arise, in part, from the fact that its sources seem mysterious and uncontrollable while it extracts immediate, adverse effects on essentially all people’s lives and household budgets.
Although supply constraints and depletion brought these bouts of inflation, there’s a universal conviction that government spending and the massive “printing” of money is the culprit, and that the only solution is to raise interest rates. Three simple points contradict this conventional wisdom.
