Dear @team007

Another yet interesting choice of topic :)

Covid, war, lockdowns, sanctions and money printing ... so many things happened in last few years. I often wonder what will be consequences of all those things 2-3 years from now.

And regardless how we will describe inflation - it is something that affect all poor and middle-class people in very similar way.

Additionally, higher inflation can also lead to higher interest rates, which can further impact economic activity.

It's also worto to mentiond, that in short term increasing interest rates does result in even higher inflation. It causes cost of morgage/rentals/loans to be higher. So obviously this extra cost will be passed on "final consumer".
Am I making sense?

The solutions to higher inflation are either to increase interest rates or to reduce the money supply

There are also other solutions:

• stimulating economy by making laws and regulations easier and clearer is one of them
• lowering taxed (on production and transportation) would be another one

But goverments do not seem to like any of those 2 solutions :/

Have a great sunday ahead of you
Cheers, Piotr