Emeritus Prof Christopher May on Nostr: As we now look to be clearly entering a period of high(er) sustained #interestrates, ...
As we now look to be clearly entering a period of high(er) sustained #interestrates, the Q. must be what will be the consequences?
The FT offers some possible answers:
Consumers (effective) demand will be constrained by servicing #mortgages & household #debt;
#productivity may rise as under-performing firms are bankrupted (unable to service their loans);
states may find fiscal manoeuvrability further constrained due to servicing #publicdebt;
& the #greentranstion may be harder to fund.
The FT offers some possible answers:
Consumers (effective) demand will be constrained by servicing #mortgages & household #debt;
#productivity may rise as under-performing firms are bankrupted (unable to service their loans);
states may find fiscal manoeuvrability further constrained due to servicing #publicdebt;
& the #greentranstion may be harder to fund.