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I'm still learning all the tendencies of these macroeconomic trends... So, this should mean mortgage loan rates, savings account interest rates, and inflation

I'm still learning all the tendencies of these macroeconomic trends... So, this should mean mortgage loan rates, savings account interest rates, and inflation are all now on an upward trend. Right? And thus housing prices should begin to curb, since the cost of loans making buying houses more expensive and less appealing, thus lowering demand. (I've already noticed increasing savings account rates and mortgage rates, so it definitely seems like this is an upward trend, though I haven't seen much curbing of housing prices yet)

dredmorbius 9y ago
Correct on housing. Low interest rates tend to increase housing prices. Rising interest rates tend to decrease them. The rent paid on money captures the rent paid to housing owners. It's a bit like a Georgian land tax, except that banks win.
graeme 9y ago
> and inflation are all now on an upward trend. Right? Not inflation. Inflation isn't going up much anywhere. It's a conundrum for central bankers. The old model may no longer work. Normally, when unemployment goes low enough, wages and then prices go up. That hasn't really happened. Instead, house prices (in Canada) and consumer debt are rising.
- surement 9y ago
  > It's a conundrum for central bankers. The old model may no longer work. It is (and has been for a while) the goal of the Bank of Canada to keep inflation between 1% and 3%: http://www.bankofcanada.ca/core-functions/monetary-policy/inflation/ http://www.bankofcanada.ca/core-functions/monetary-policy/in... And it is not doing too bad: https://tradingeconomics.com/canada/inflation-cpi https://tradingeconomics.com/canada/inflation-cpi
  - graeme 9y ago
    They're raising rates while inflation is at the low end of their band. Normally, they wouldn't do that. Or rather, normally inflation would be going up now that the economy is. My point was that inflation and growth/employment may have decoupled. This article expands that argument at length: http://business.financialpost.com/news/economy/the-phillips-curve-is-broken-heres-why-that-is-keeping-economists-up-at-night http://business.financialpost.com/news/economy/the-phillips-...

dredmorbius 9y ago

Correct on housing. Low interest rates tend to increase housing prices. Rising interest rates tend to decrease them. The rent paid on money captures the rent paid to housing owners. It's a bit like a Georgian land tax, except that banks win.

graeme 9y ago

> and inflation are all now on an upward trend. Right? Not inflation. Inflation isn't going up much anywhere. It's a conundrum for central bankers. The old model may no longer work. Normally, when unemployment goes low enough, wages and then prices go up. That hasn't really happened. Instead, house prices (in Canada) and consumer debt are rising.

surement 9y ago
> It's a conundrum for central bankers. The old model may no longer work. It is (and has been for a while) the goal of the Bank of Canada to keep inflation between 1% and 3%: http://www.bankofcanada.ca/core-functions/monetary-policy/inflation/ http://www.bankofcanada.ca/core-functions/monetary-policy/in... And it is not doing too bad: https://tradingeconomics.com/canada/inflation-cpi https://tradingeconomics.com/canada/inflation-cpi
- graeme 9y ago
  They're raising rates while inflation is at the low end of their band. Normally, they wouldn't do that. Or rather, normally inflation would be going up now that the economy is. My point was that inflation and growth/employment may have decoupled. This article expands that argument at length: http://business.financialpost.com/news/economy/the-phillips-curve-is-broken-heres-why-that-is-keeping-economists-up-at-night http://business.financialpost.com/news/economy/the-phillips-...