Tuesday, August 20, 2024

Why the interest rate is so high

 No idea. Israel has one of the highest interest rates in the world, with light inflation. Generally, this fiscal measure controls inflation and curbs economic activity to produce a recession. People are not taking out mortgages or buying apartments because of the interest rate. Yet real estate prices are high. Israel is prospering and there is much money in the country - that is my gut feeling. An alternative take is that Smotrich is printing money to finance the war.
 

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