If interest rates are raised high enough to kill off inflation, how bad will the consequences be?

Cineworld has signalled its intention to declare bankruptcy. Like many companies in the UK and elsewhere, the London-based cinema chain took on massive amounts of debt to expand. It is expected to use the Chapter 11 process in the US to restructure its debt and other obligations.

Variations of this story are set to be repeated again and again. With benchmark interest rates rising from the near-zero levels adopted by central banks over a decade…

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