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Originally Posted by Gigi3000
The higher cost of borrowing filters into prices too
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It affects prices, but not inflation. If you pay cash for a house or car, the prevailing interest rates are irrelevant.
Again: Inflation is literally a relative increase in the money supply, AKA federal money printing.
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Inflation occurs when the supply of money increases relative to the level of productive output in the economy. Prices tend to rise because more dollars are chasing relatively fewer goods. Another way of stating this phenomenon is that the purchasing power of each money unit declines.
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Investopedia