Are Interest Rate Hikes Fueling Inflation? Mosler’s Challenge

Donate: 🙏 https://www.buymeacoffee.com/slobodnipoI Most central banks say higher interest rates fight inflation. Warren Mosler argues the opposite. In this highlight, Mosler says the idea comes from outdated gold-standard thinking. He points to Japan, the United States, and the eurozone as examples where near-zero interest rates existed for years without producing runaway inflation. His most provocative argument is that higher rates can actually add inflationary pressure, because governments then pay more interest to people who already hold money and bonds. He compares this to a kind of “basic income for the wealthy” — paid in proportion to how much financial wealth they already have. He also argues that much recent inflation is better explained by energy costs, food, supply shocks, and regulated prices — not simply by fiscal deficits or low rates. Full episode: https://www.youtube.com/watch?v=nG4mxrWQ7T0&list=PLJTy3oXCzHShsVuJ-zfiGnx96nuR-BNWB&index=1 WEB: slobodnipodcast.hr