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He says "interest rates on other assets", which I take to mean "rate of return of other assets" since the phrase "interest rates on other assets" doesn't make s
by lottin 7y ago
He says "interest rates on other assets", which I take to mean "rate of return of other assets" since the phrase "interest rates on other assets" doesn't make sense. Interest rate is a particular rate of return, that of money.
- gjm11 7y agoHe does indeed say those words. And what he means by them is that house prices change if interest rates change, not the other way around. (Whether he means interest rates specifically, or rates of return on other assets like equities, I'm not certain, but those things have some tendency to vary together and I would expect all of them to influence house prices in a similar way.)