Keyword: real interest rates

Hong Kong Housing Boom (1/21/2010)

The low interest rates intended to stimulate the recessed US economy after the US housing bust in 2007 – 2009 have inadvertently led to a housing boom in Hong Kong when Hong Kong has to lower its interest rates to defend its dollar peg.

Keywords: apartment, dollar peg, foreign exchange, housing boom, housing bust, inflation, mortgage, real interest rates

Liquidity Trap (6/17/2010)

Even with short-term interest rates close to zero, the US economy has failed to respond to cheap money because of anemic bank lending.

Keywords: inflation rate, interest rate spread, interest rates, lending, Liquidity trap, loans, negative interest rates, nominal interest rates, real interest rates, yield curve