Inflation in advanced economies is rising due to geopolitical turmoil and fragile supply chains, not excess demand. Policymakers' reliance on interest rates is questioned as a solution to these root causes.

<p>Inflation is once again rising across advanced economies, driven by geopolitical turmoil, surging energy prices, and fragile supply chains rather than excess demand. Yet policymakers continue to treat it as a monetary problem, relying on a tool that cannot address the underlying causes.</p>