3 ms·
I think it is as follows until abou 2026 Central banks has stimulated the economy by lowering interest rate below is natural market price. Central banks try to
by acd 5y ago
I think it is as follows until abou 2026
Central banks has stimulated the economy by lowering interest rate below is natural market price. Central banks try to keep target inflation rate at 2%.
Central banks tried to control wage inflation in a globalized market that does not work. We can import lower wages by buying goods from other countries globalization.
We have prize inflation in food oil prize and fertilizer.
Central banks will increase interest rate to target higher inflation.
Some High loan mortage borrowers will not be able to pay higher mortage rate and will be forced to sell. Selling of homes will cause housing prizes to decrease since buyers will look at how much monthly interest rate they can pay at higher interest rate.