Supply shocks are recessions, because if there are less goods to sell, the amount of economic activity is going to fall. The only question, then, is how the newly scarce goods will be rationed. Inflation rations by price. Higher Interest rates ration by creditworthiness. A case can be made for both methods, but some mix of the two is probably the best we can hope for. Either way, though, someone must be priced out of some market, because the goods aren't there to be bought.