Rising rates, good for the economy

We do not comment much, "the other side of the Euribor" that a rise in rates can be beneficial for the economy (which is not mortgaged for many families).

Today you can read in "The World" article "Rising rates, good for the economy" in which he quoted the words of Joaquín Almunia:

"A gradual adjustment in the property sector could even have positive consequences for the Spanish economy because it would favor a shift in the composition of growth, so it is less based on domestic demand and that has a better mix between domestic demand and external demand '

On the other hand, the secretary of the Economy and Employment of the PSOE, Inmaculada Rodriguez-Pinero, believes that "a sharp rise in interest rates" would not result in a bad for Spain because "we have a high inflation differential with the European Union and this increase "can get a little bit so expansive growth in demand and help to reverse the inflation differential."

As such, we have too much debt in some historically low rates and that has overheated the economy. It is not ruled out a price adjustment in certain assets ...

Written by Carlos Lopez on July 21, 2006 with 20 comments
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