Yes absolutely agree that the cause of current inflation is caused by a huge drop in productivity brought on by the pandemic but that's not the only cause. It's also exacerbated by the reckless showering of cash onto people which allows people being able to spend more on very limited quality of products thus driving prices further into inflationary territories. So an increase in interest rate is necessary unfortunately to essentially encourage people to put the money away and not spend them all. What countries with planned economies would do is to install a voucher system where purchasing certain kinds of goods would require the surrendering of a fixed number of government-issue vouchers issued by the government according to the number of members in a household in addition to cash and the number of vouchers required would depend on the quantity of the goods to be purchased. Trading and altering the vouchers would be illegal and punishable by very harsh punishments. The voucher system would only be phased out once productivity picks up to the point that supply is more than enough to satisfy demand. That's not a perfect solution but it's a solution.
That's temporary cuz all of the medical resources were all concentrated on getting rid of covid. Once covid eases, the shortage would gradually ease off as well.
Like I said before, the fed can't really leave the rate at zero; that would've exacerbated the problem. What they could've done is do a a better job encouraging people to work instead of just handing out stimmie, create more incentives not with money but perhaps in tangible goods to encourage people to work, do more to create and support some sort of bartering networks to encourage people not to use money as much to exchange for goods so the real value of the goods gets increased. With regards to increasing housing, what they should've done is to use better technology to build more affordable housing and not just any housing. This is what people need, housing with new innovative and yet low-cost materials instead of the traditional materials that experienced a shortage and a huge price spike on the world market, housing using innovative technology like 3D-printing and etc.
Crisis are not problems but opportunities to create innovative solutions and with this inflation, I find there are not many innovations, new ways of doing things in addition to the good 'ol' strategy of increasing interest rates and that is a shame.
