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by Raydovsky 1318 days ago
I dont get it. Prices are rising because fossil fuels are more expensive.

How do interest rate hikes fix that?

2 comments

Flip the causality: fossil fuel (and everything else) prices are increasing because of an increased money supply. Raising the interest rate indirectly lowers the money supply.

https://fred.stlouisfed.org/series/M1SL

https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/m...

prices are rising because we want to use the same amount of fuel as before

use less and the prices will be falling