Normally, inflation is 1:1 related to interest rates. We take on a ton of debt or print currency, then to hedge the inflation, we force the interest rate down to counter inflation by encouraging lending.
Problem - interest rates are not possible to lower now, without having a negative interest rate (which will cause investment to flee the country). Now money's value has nowhere to go but down.
In reality we been doing this since 2008.
Normally, inflation is 1:1 related to interest rates. We take on a ton of debt or print currency, then to hedge the inflation, we force the interest rate down to counter inflation by encouraging lending.
Problem - interest rates are not possible to lower now, without having a negative interest rate (which will cause investment to flee the country). Now money's value has nowhere to go but down.