Raising the interest rate increases the interest rate on mortgages, which decreases the demand for housing over time, i.e., there is lag estimated at about two years. A lot of other demand is also connected to demand for housing, making housing demand a potent economic factor albeit a lagging one.
On the other hand, raising the interest rate also increases the payout on government securities and also interest payments on reserves, which adds to government spending. This happens immediately.
Brave New World
Do Interest Rates Really Drive the Economy?
Brave New World
Do Interest Rates Really Drive the Economy?
JW Mason | Associate Professor of Economics at John Jay College, City University of New York and a Fellow at the Roosevelt Institute
2 comments:
Naw, stupid voters do. They drive everything. Stupid voters prop up the whole shit show and shouldn't be allowed near sharp objects.
Who walk, talk and act like capital after being potty trained from the age of 5 to do so. Even though the vast majority of these fools are blue collar Labour.
Stupid voters are finally waking up to reality a decade too late in my own country. The talking heads are actually coming out and saying the quiet part out loud.
" Sturgeon's legacy to Scotland may yet be a right-wing backlash. Using empty 'progressivism' as a cover for venal corporate politics has a proven record in this regard. "
There it is the penny has finally dropped. I've been saying the quiet part out loud for years now and was mocked and laughed at for doing so by a bunch of EU uber alles imbeciles. That struggle to dress themselves in the morning without any help.
This article describes the factions of stupidity within my country beautifully. Using the Godfather movie to do it.
The SNP’s Neoliberal Cartel is Breaking Up
https://www.conter.scot/2023/3/1/the-snps-neoliberal-cartel-is-breaking-up/
The whole political landscape is going to be shredded, obliterated. By potty trained voters fighting over the potty that was always full of shit. Deposited there by Richard " I can change the EU from within all by myself " Murphy.
"The Good, The Bad and The Ugly" is entertainment.
"The Brainwashed, The Bad Teachers and The Intellectually Dishonest" is what we have to deal with in the real world.
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