So, what should have been done to fight current inflation? Every effort must be made to support production, producing industries. One thing that has to be done is the provision of affordable credit and capital sources. To that end, central banks need to keep a reasonably easy monetary policy. If credit is made more expensive, on top of all the other pressures on the producing sector of the economy, the supply is likely to shrink even more, the money-goods and services disbalance is likely to grow even further, and prices will grow accordingly. Hence, higher interest rates will cause even higher inflation.