Embed Notice

My completely unsolicited and ridiculously amateur thoughts:

I can’t seem to find good data that increasing the interest rate does anything outside of the obvious: making loans more expensive (and thereby a lot of other goods) and lending more profitable. Basically, taking from the people who need to lend and giving to those who have enough to lend out. Reverse Robin Hood.

The current inflation seems to have complex and interacting causes and I think there’s a reasonably good chance it would’ve sorted itself out.

The interest hikes have, however, also contributed to the inflation, while increasing housing costs dramatically for owners and renters. And simultaneously gutting the Norwegian construction sector.

So… my guess? There’s a good chance there will be a recession, maybe not a big one 🤷🏻♀️, but even worse: I think there’s a good chance the central banks created it.