It’s Time to Abandon Rate Hikes

For those following me on Twitter, you might know that I’m a bit fixated with inflation, its underlying causes, and how best to arrest it. Here’s what we know after one year’s worth of controversy: (1) inflation is largely coming from two sectors of the economy, housing and electricity; (2) inflation does not seem to be slowing from interest rate increases, with core inflation of 6.6 percent hitting a 40-year high in September; and (3) neoliberal economists cannot fathom a theory of inflation that doesn’t blame workers.