The Money Farm Team

What Type Of Unemployment Is Created By A Recession?

A recession, or a period of negative economic growth, can result in cyclical unemployment. Downturns in the business cycle, in which demand for products and services diminishes over time, can also generate cyclical unemployment. Is unemployment in a recession frictional? Frictional unemployment, unlike other types of unemployment, does not rise during a recession. During a […]

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What Does Inflation Mean For Mortgage Rates?

Inflation is a self-fulfilling prophecy. The longer it lasts, the more insidious its consequences become, with increased mortgage rates as an unwelcome side effect. Inflation devalues everything denominated in US dollars because it devalues the US dollar. Of course, this includes mortgage-backed securities, so when inflation is prevalent, MBS demand begins to decline. After all,

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