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/biz/ - Business & Finance

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55982792 No.55982792 [Reply] [Original]

>implying higher interest rates fight inflation
>consumers, the largest contributors to inflation, on average don't give a shit about interest %. The interest rate on your average loan could be 25% and as long as the monthly payment fits into a person's budget they will not care
>businesses will continue to borrow as much as they can in order to remain competitive with larger firms
>governments will continue to sell debt to keep up with national security concerns and improve the general welfare
>tl;dr everyone borrows just as much as they would have anyways at 0% interest rates but now inflation is being fueled by sheer higher interest rates