• Cornelius_Wangenheim@lemmy.world
    link
    fedilink
    English
    arrow-up
    15
    ·
    11 months ago

    That’s how literally every central bank works. If there’s too much money chasing not enough goods, you get inflation. The only way to solve it is to either make more things or reduce the amount of money. Central banks can’t do anything about the former, so they concentrate on the latter by raising interest rates.