Not immediately. At the very least interest rates need to match the consumer price inflation rate. It will be at least 2 years before that happens even if they keep the current pace of the increases.
Other events may take place before then which will make the reduction in inflation a look like a speed bump in comparison.
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Yes, this is true, but the increase in interest rates may cause disruptions in production.
There is no danger for now, but if it continues like this, I think this problem will arise.
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Already been happening. Recall how people were complaining about the increase in prices of laptops, tvs, and appliances. Guess what is happening? Those arent moving and inventories are up. So they will have to be reduced.
And so we see the same thing in the opposite direction. The fact that supply chains in many instances are starting to sort themselves out (maybe simply because demand gets crushed) means the move is on.
When you have deflationary money and not even USD in the global economy, things are unsustainable.
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