June 23, 2021

Warning mortgages could see 56 per cent increase if US inflation scenario plays out

An expert predicted scenario could see the average mortgage repayment rise by over half. Photo / 123RF

In the children’s fairytale Goldilocks and the Three Bears, Goldilocks encounters three bowls of porridge. One that is too cold and one that is too hot, until, of course, she settles on one that is just right.

As the world continues its long and challenging recovery from the coronavirus pandemic, the global economy and Goldilocks, ironically have a great deal in common.

Economies around the world must not be too cold (recessionary and deflationary) or too hot (inflationary), lest major issues begin to swiftly arise.

Going forward, the global economy faces the contractionary forces of struggling economies across the world, relatively anaemic recoveries outside of nations that have engaged in enormous levels of stimulus and declining demographics in most of the world’s largest economies.

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