Benzinga | Oct 8, 2021 07:02AM EDT

Cramer Says Monetary Policy Won't Help Inflation, But This Will

On CNBC's "Mad Money," Jim Cramer said that monetary policy is not equipped to bring down inflationary pressures.

Reasons for High Inflation: Cramer pointed out that wage inflation had resulted from the short-sightedness of businesses during the pandemic. Companies paid less or laid off people. People resigned.

Williams-Sonoma, Inc. (NYSE:WSM) CEO Laura Alber kept paying people even when stores were closed. When they reopened, they had all the staff they needed, he said.

He added that plastic inflation was caused by the hurricanes and the Fed cannot control that.

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How To Control Inflation? The current inflationary scenario is different from Germany's Weimar Republic or the stagflation of the 1970s, Cramer said. Inflationary pressures need to be controlled with Pfizer Inc. (NYSE:PFE), Moderna Inc (NASDAQ:MRNA) and Johnson & Johnson (NYSE:JNJ).

He believes COVID-19 is the cause and needs to be controlled to ease inflation.

Photo: Tulane Public Relations via Wikimedia.