[mapuc]

I had to make a search to learn why a higher interest rate is the best tool against high inflation.

Throughout my life I have heard this so many times-Increase interest rates to fight a high inflation...but until now I have never given it a thought.

"When the interest rate is high, the supply for money is less, and hence inflation decreases, which means supply is decreased. In contrast, when the interest rate is decreased or low, the supply of money will be more, and as a result, inflation increases, which means that demand is increased."

But...we have had years with negative interest and the inflation was low-so why now what have triggered the increase of the inflation?

Markus