Central banks claim they defeated inflation by raising interest rates. The evidence suggests otherwise.<\/p>\n
In this video, I look at seven major economies, including the UK, USA, Eurozone, Canada and Australia, and show why inflation was largely driven by supply shocks, not excess demand.<\/p>\n
I also explain why inflation was already falling before many interest rate rises had been completed, why higher rates may now themselves be feeding inflationary pressure, and why the social costs of these policies have fallen hardest on working people.<\/p>\n
The result is a serious challenge to the entire theory behind modern central banking.<\/p>\n
This video also asks whether so-called independent central banks are really independent at all, when they all reacted in almost exactly the same way to the inflation crisis of 2021 and 2022.<\/p>\n
The evidence suggests central banks reacted too late, used the wrong tools for the wrong problem, and may now be trapping economies in a cycle of structurally high interest rates and persistent inflation.<\/p>\n
So, has the whole model failed?<\/p>\n