> Instead, keep interest rates now. Then wages will go up, but prices of goods also go up, and prices are less stable. This seems strictly worse for everyone.
FWIW I disagree with this. Prices will go up, which will incentivize adding new supply, and prices will eventually stabilize at a new (albeit higher) rate. This will eventually be compensated for through the wage-price cycle.
Rising prices are a function of supply exceeding demand right. There's simply not enough gas right now for everyone. So you can either reduce demand, or you can increase supply. Reducing demand, IMO, isn't the right way forward.
FWIW I disagree with this. Prices will go up, which will incentivize adding new supply, and prices will eventually stabilize at a new (albeit higher) rate. This will eventually be compensated for through the wage-price cycle.
Rising prices are a function of supply exceeding demand right. There's simply not enough gas right now for everyone. So you can either reduce demand, or you can increase supply. Reducing demand, IMO, isn't the right way forward.