Are Interest Rate Rises The Best Way to Reduce Inflation?
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English - January 25, 2023 21:00 - 4 minutes - 6.81 MBInvesting Business Society & Culture Places & Travel hotspotting propertyinvesting propertyinvestment firsthomebuyer smsfpropertyinvestment Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
I find it quite startling that no one in this country questions the prevailing theory that the best way – indeed the only way – to fight inflation is to increase everyone’s mortgage rates.
Everyone – including economists, politicians, journalists and the general public – seems to blindly accept, without question, that constantly lifting interest rates is the thing to do when inflation is high.
I think there’s a strong case that the conventional wisdom – if indeed it is wisdom – is questionable in the current circumstances and that Australian families are being slugged with massively higher dwelling costs for no good reason.
There are other, better, ways to deal with the key components of the current high inflation rate and that higher interest rates are not having the forecast effect.