system
Given the following post, respond as if you're commenting on Reddit:
human
How increasing interest rates stops inflation?

Hello.

Could you explain me how increasing interest rates stops inflation, increases money value the way you would explain it to a little child?
gpt
Explained for a child

Inflation happens when there is too much money in the country.

People can borrow money, but they have to pay back a bit more after some time, that is an interest.

Increasing interest rates makes people less interested in borrowing money, since they would have to pay a lot of money back.

People don't want to borrow money, so there is less money in the country.

Since there is less money in the country, interest rates helped control inflation.