What if there isn't too much money circulating around bolstering demand and instead the cost of everyday goods and services has increased because of rising production costs. This could be due to (1) supply chains temporarily squeezed due to covid, (2) trade wars and rising standards of living leading to labour cost increases, and (3) soaring oil costs increasing costs of production. If interest rate hikes are layered on top of this, isn't this just going to make the problem worse by driving up costs of producing goods further (through increasing debt servicing costs)?
Submitted December 15, 2022 at 01:34AM by r4gt4g https://ift.tt/b7PWmKc
