How does raising interest rates control inflation?
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YouTubeThe Economist
How does raising interest rates control inflation?
When central banks raise interest rates, the impact is felt far and wide. Mortgages become more expensive, house prices might fall and unemployment can rise. So why do central banks do it? This film tells you why. 00:00 - Why should you care about rising interest rates? 00:45 - What are interest rates? 01:36 - What do central banks do? 02:14 ...
3.2M viewsJun 9, 2022
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How inflation works in your favour… 👇 Borrow money today while it holds more value. Use it to buy assets that rise with inflation. As prices increase, the value of your assets grows. Your debt stays roughly the same in nominal terms. The gap between asset growth and fixed debt becomes your gain… #inflation #assets #propertyinvesting #moneymindset #finaciallyfree | Abi Hookway
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How inflation works in your favour… 👇 Borrow money today while it holds more value. Use it to buy assets that rise with inflation. As prices increase, the value of your assets grows. Your debt stays roughly the same in nominal terms. The gap between asset growth and fixed debt becomes your gain… #inflation #assets #propertyinvesting #moneymindset #finaciallyfree | Abi Hookway
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