That is absolutely wrong and that notion leads to a great number of other fundamental mistakes. Predators (in Government and Banking) use those mistakes to justify stealing from other people.
Inflation happens when there is an increase in the money supply without a corresponding increase in available goods and services.
The distinction is important.
A rising economy does not cause inflation if the money supply grows at approximately the same rate as the available goods and services ("GSR"). Interest rates above that GSR are a transfer of wealth and income from producers to financiers.
When the Federal Reserve raises interest rates significantly higher than the GSR, they are bleeding off the economy and stuffing the margin into their own purses.
When Governments "borrow" money in fiat currency, they are essentially just printing new currency. Central bankers are partners in the scam and take their percentage off the top. Everybody else ends up with slightly devalued currency unless the economy is truly growing.
Inflation is a hidden tax on the population. It is caused by deliberate Government action and abetted by whomever is running the Central banking system.
It's all fun and games until the Government starts creating new money supply faster than the true growth of the economy. Which inevitably occurs.
It’s all fun and games until the Government starts creating new money supply faster than the true growth of the economy. Which inevitably occurs.
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They do it every time they raise interest rates and cause a recession.
Then they set rates too low to get the economy growing again. Under Obama the rates got to zero and they had to do quantitative easing.
I’m sorry. You are just wrong. So wrong its not worth explaining it to you.