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by koyanisqatsi 1335 days ago
You probably should spend some more time thinking about how that all fits together because saying that the bank creates money from interest rates means that the central bank sets the rate according to what economic growth they're expecting. If the rate is decoupled then it stops tracking real economic productivity as I've defined it. The obvious logical conclusion is that raising rates will lead to a recession because economic productivity has been stagnant for some time now. So if the rate is above actual economic productivity then that will reduce the total money supply and this seems to be their main goal. There is no way to reduce inflation without destroying money.
1 comments

> There is no way to reduce inflation without destroying money.

Of course there is. When inflation is caused by supply restrictions, increasing supply will reduce the rate of inflation. Inflation is about prices, it's not about the money supply per se.

You've been making some weird personal attacks and telling people they need to "spend some more time thinking" and you should really stop doing that.

Telling people to think is only a personal attack if they prefer not to.