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When a lot of people can borrow money at a low interest rate, this may encourage them to buy more, which can disrupt the supply chain.
This could make things more expensive, because more people can afford to buy, but there may not be enough supply.
Borrowing money at a lower rate may also encourage people to do things they normally wouldn’t do, such as borrowing money to live off.
You may have businesses looking to expand, but can’t find individuals to work.
In the housing market, you may also have buyers offering over asking price because they might only be concerned with their monthly payment, and not the overall price of the house.
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Image and article originally from thebrownreport.com. Read the original article here.