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How raising interest rates curbs inflation – and what could possibly go wrong

  • Written by Rodney Ramcharan, Associate Professor of Finance and Business Economics, University of Southern California
How raising interest rates curbs inflation – and what could possibly go wrongThe price of used cars has soared during the pandemic. AP Photo/Matt Rourke

After about three decades of relatively low inflation, consumer prices are skyrocketing again.

The price of gasoline, for example, was up 40% in January 2022 from a year earlier, while used cars and trucks jumped 41%, according to data released on Feb. 10, 2022. Other...

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