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This drives up wages and thus prices of many (non-traded) services, increasing the overall price level of the economy.
en.wikipedia.org The problem with this argument is that services are, and will remain, largely non-traded.
www.brookings.edu An alternative is domestic deflation combined with extreme fiscal tightening -- that is, a period of slow or negative growth in wages, incomes, and some prices of non-traded goods.
www.project-syndicate.org The banking book includes non-traded items such as deposits and loans, for which estimating the impact of rate shocks is complicated.
www.risk.net The increased demand for non-traded goods increases their price.
en.wikipedia.org