How rate hikes have sparked debate on the causes of inflation and how to fight it

Central banks have been trying their best to convince the public that their interest rate hikes are ultimately for the greater good. But not everyone is buying it.

Central banks have been trying their best to convince the public that their interest rate hikes are ultimately for the greater good.

But not everyone is buying it.

An informal coalition of labour groups, political leaders and economists has formed over the last year and a half to challenge the very economic concepts behind monetary policy.

In particular, these voices have objected to central banks' focus on cooling the labour market, something that would ultimately mean a higher unemployment rate and lower wage growth.

Economists traditionally view a hot labour market as a sign of an overheated economy and is one of the indicators central banks monitor for inflation.

In the U.K., economist Ann Pettifor has argued central banks have been obsessed with crushing demand and "disciplining" workers. Meanwhile, Wharton School emeritus professor of finance, Jeremy Siegel has called the U.S. Federal Reserve's focus on the labour market "misguided."

The pushback comes at a time when workers are already feeling squeezed by affordability issues and politicians are increasingly choosing to weigh in on rate decisions.