[monkeydreams]

Lamontcg offered you the simple explanation of why interest rate management is used to manage inflation. They didn't muddy the waters by talking about market distortions and why it is best to minimalise these. They didn't go into an explanation of why interest rate hikes are themselves a marketplace intervention preventing the proper movement of debt pricing. They didn't even get lost in the labyrinth of exchange rates, and the impact all of this has upon a global trade currency.

Their explanation was about as simple as you can get.

> Yes, but prices are not demand, they are supply and demand. What if you shut down the parts of the economy that make food and gas?

Think this through and remember that food and fuel are must haves. There will always be demand, even at high prices. Just less of it. Which is what the point is.