Only if we return to higher rates of interest fr a long period. Here in the UK the desire seems to be to return inflation and interest rates to approx 2%. Rates of 2% and inflation of 2% means there is little incentive to save.
The theory is that high interest rates will bring inflation down - once they are down the market is already predicting that rates will drop to 2% - so the era of cheap money will continue...
It seems to be working, but no better here than it is on the continent and USA, where inflation is already lower.
Comments
Only if we return to higher rates of interest fr a long period. Here in the UK the desire seems to be to return inflation and interest rates to approx 2%. Rates of 2% and inflation of 2% means there is little incentive to save.
How are they going to control both at the same time. Govt underwriting high risk retail loans, quantitative tightening?
The theory is that high interest rates will bring inflation down - once they are down the market is already predicting that rates will drop to 2% - so the era of cheap money will continue...
It seems to be working, but no better here than it is on the continent and USA, where inflation is already lower.