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Podcast: The Real Estate Espresso Podcast
Episode: Are You Listening J Powell?
Description: On today show we are looking at whether increasing interest rates is effective at combatting inflation.Â
The theory is that when interest rates rise, people are encouraged to save money and benefit from the income that is available from those higher interest rates. This is particularly true if interest rates are higher than the rate of inflation, so that you get a real positive rate of return on interest-bearing instruments.
When I think back to the early 1980s, I can remember conversations with my mother about putting my savings into high-yield bonds that were government-backed. I...