3 ms·

Ok, but why is the impact of borrowing costs so big on the US?

• bawolff 3y ago
  Why are we assuming this is US specific? Does it not happen in other countries? (Not rhetorical, i have no idea what the answer is)
• offices 3y ago
  It's intentional. When the institutions responsible talk about 'raising interest rates', they implicitly add 'to increase unemployment which will reduce spending and reduce inflation'.
• vidarh 3y ago
  Why would it not be? As long as there is credit available, supply of it will drive demand for products and services, and property, and either creates jobs and/or affect prices also for people who never borrow. The reality is that there are very few places in the world where people in general can afford to buy property without borrowing for example, and rental prices tend to reflect purchase prices.
• deleted 3y ago
  [deleted]