PPRuNe Forums - View Single Post - Inflation Inflation! EK what to expect?
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Old 2nd February 2008 | 05:21
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Gulf News
 
Joined: May 2005
Posts: 191
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From: Jew-Buy Mate
How does paying more for something that should be less get explained as controlling inflation?
Because if borrowing costs are lower people will borrow more to buy more stuff. In a free market economy (ie without price controls) more money chasing fewer goods will cause inflation.

I agree that residential mortgage rates should be reduced as this should improve supply and reduce rents in the log term with everyone getting a fair shake of the dice but once you have lived here for any length of time you realize that the economy is terribly slanted toward making a section of society filthy rich at the expense of others.
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