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the claim
Low interest rates cause inflation.
the verdict
CONTESTED PARTIAL
Recorded sources
1 source for · 4 against
Is it true that low interest rates cause inflation?
Partly. Evidence is mixed and mostly partial: several studies find low or ultra-low interest rates coexisting with low inflation or argue low policy rates do not cause inflation, while one paper lists extremely low policy rates among factors behind the 2021–2022 inflation acceleration. No source settles the general causal claim at full strength.
Verdict: CONTESTED PARTIAL · 1 source for, 4 against · Last checked
Evidence for · 1
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Goryunov, E. L., Drobyshevsky, S. M., Kudrin, A. L., & Trunin, P. V. (2023). Factors of global inflation in 2021–2022. doi.org. https://doi.org/10.32609/j.ruje.9.111967
Evidence against · 4
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When Low Interest Rates Cause Low Inflation. (2015). doi.org. https://doi.org/10.1007/s10272-015-0559-6
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More against · 3
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Gavrovska, M. M. (2022). RISING INTEREST RATES REDUCE INFLATION: AN EMPIRICAL STUDY FOR THE REPUBLIC OF NORTH MACEDONIA. doi.org. https://doi.org/10.20544/horizons.a.30.1.22.p10
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RISING INTEREST RATES REDUCE INFLATION: AN EMPIRICAL STUDY FOR THE REPUBLIC OF NORTH MACEDONIA. (2022). doi.org. https://doi.org/10.46763/ijemt2222060mg
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Michael, W. & Cecilia, G. S. M. (2015). Are Low Interest Rates Deflationary? A Paradox of Perfect-Foresight Analysis. doi.org. https://doi.org/10.7916/D8M044V0
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