Re:Low interest rates in advanced countries have pushed mone...
by imtringued on Thursday November 25, 2021 @03:08AM
(#29339272)
If you make money more expensive nominal house prices might drop but you also made it harder to acquire money in the first place. Ultimately the only difference is that more money goes to the banks instead of the land owner. It doesn't create more land or housing. The supply and demand mismatch hasn't been solved.
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Re:Low interest rates in advanced countries have pushed mone...
by atweiden on Thursday November 25, 2021 @05:08AM
(#29339934)
> If you make money more expensive nominal house prices might drop but you also made it harder to acquire money in the first place.
In a deflationary environment, as housing/rent prices drop, savers are rewarded.
Renting doesn’t entail taking out a mortgage.
> It doesn't create more land or housing.
Nor does building more housing in an inflationary environment necessarily satiate investor demand for inflation-resistant assets in the form of residential property.