Now is this serious good idea or a bad move if we did this. Switzerand and denmark done this.
http://www.cfoworld.co.uk/news/gover...nterest-rates/
Would it solve problems encourage the investment.
Did find how it works risks it possesses.
http://economics.about.com/cs/intere...o_interest.htm
Problem is the dangers it can bring
http://blogs.wsj.com/eurocrisis/2012...nterest-rates/
Quote:
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Ultimately, these property price rises tend to trigger construction booms and a self-reinforcing credit cycle of rising prices, more building and more debt to build yet more houses. This is what happened in Spain and Ireland in the decade before the credit crunch.
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So we likely get excelaration of inflation and new property boom on debt. Could cause big issue in few years ala spanish property.
Like housing/land values will shoot through the roof. Seriesly think UK can ill afford that to happen.
Would love to know what happens those banks/building societies unable pay the BOE could it trigger another banking crisis.
I am in two minds on the idea one yes create jobs in construction but seems going to come with alot baggage.