Financial analyst James Stack predicted a collapse in the real estate market in 2008 and announced a slowdown in real estate last year. If there is a recession, there is a significant risk to property prices, said Stack in an interview with Bloomberg.
Low fertility and increasing life expectancy in most of the world's economies are causing a decline in the natural interest rate. Too restrictive monetary policy may increase the risk of the economy falling into a deflationary trap.
“If we were to only take into account the wishes of selected members of the Eurozone, we could act faster, but that is impossible,” says Ewald Nowotny, the Governor of the Austria’s central bank, OeNB.
Changes in short-term interest rates have a significant impact on the economy, but the size of this impact is curbed by a relatively small role of credit as a source of financing for Polish enterprises.
Czech Finance Minister Alena Schillerova is rethinking her country’s finance strategy. She wants to distribute the country’s growing wealth more widely, and a slowing economy won’t stop higher social spending and investment.