Purpose In this paper, the authors examine the causes of 2021–2023 inflation and evaluate whether raising interest rates is the right solution. Design/methodology/approach The authors evaluate both the macroeconomic (too much demand) and microeconomic (monopoly pricing and supply chains)...

Beyond its original mission to 'furnish an elastic currency' as lender of last resort and manager of the payments system, the Federal Reserve has always been responsible (along with the Treasury) for regulating and supervising member banks. After World War II, Congress directed the Fed to pursue...