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Building houses to fight inflation Many countries such as Brazil experienced years of hyperinflation (where prices in the economy keep going up very fast) whilst having rising house prices. The normal tool for stopping this is to deflate the economy making many people unemployed. This creates much misery for people as well as social unrest. An alternative to this is to build more houses and giving them to the poor. This would reduce wage demands since paying for your house is a major part of expenditure and also reduce the rate of increase of house prices thus cutting off a major source of inflation in an economy. |
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New Vision for the World 2006 (c) all rights reserved.