* Everything has a cost. Interest rates are the cost of borrowing money.
and
* The law of supply and demand should apply. The supply of 'money' has increased greatly through increased paper notes and electronic ledger entries and increased credit. (Oz M3 growing at more than 14%/yr). If supply has risen, demand should abate and therefore the cost of borrowed money (ie interest rate) should fall, not rise.
* Inflation is due to an increase in currency and credit which is not matched by increased productivity. (Increased prices of goods and services are the result of inflation, not the cause of it.)
* Totally ridiculous imo to attempt to tackle inflation by raising rates whilst at the same time increasing the amount of circulating 'money'.
Keynes' thought processes might not have ben infallible.
