The Money Farm Team

How Does Inflation Affect Unemployment?

The Phillips curve shows that historically, inflation and unemployment have had an inverse connection. High unemployment is associated with lower inflation or even deflation, whereas low unemployment is associated with lower inflation or even deflation. This relationship makes sense from a logical standpoint. When unemployment is low, more people have extra money to spend on

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Do Housing Prices Go Up With Inflation?

During inflationary periods, practically everything increases in price, including housing costs and rent, as well as mortgage interest rates. With real estate, there are three basic strategies for investors to protect themselves from inflation and rising costs. Take advantage of low interest rates: According to Freddie Mac, 30-year fixed rate mortgage interest rates are now

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Why Is Monetary Policy Ineffective During A Recession?

There are two reasons why monetary policy may be less effective when interest rates remain low. rates: I the economic context’s headwinds; and (ii) inherent nonlinearities Interest rates are inextricably connected. 2.1 Crosswinds In the aftermath of balance sheet recessions, persistently low interest rates tend to dominate. That is, recessions that occur when private debt

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