Drive interest rates to zero. Inflate assets with quantitative easing. Handout stimulus money. Provide companies with forgivable loans with little over sight. Who would have thought we would have inflation?
Why would zero interest rates imply inflation? Prices are driven by supply and demand. If the supply of physical capital exceeds the demand for physical capital it is only natural that the interest rate is 0%. If capital depreciates and needs replacement over time then it is even logical for the interest rate to be negative if people produce too much. The interest rate is no longer at zero so we are already past that…
Because its free money. If you can borrow money at less than the rate of inflation its free.
Free money drives up prices because you have more dollars chasing the same assets.
See the housing market.