http://lendingproguide.com/how-are-lenders-and-borrowers-affected-as-inflation-rates-change-and-they-attempt-to-protect-their-purchasing/ Free Consumer Lending Resource Fri, 18 May 2012 10:40:10 +0000 http://wordpress.org/?v=2.7 hourly 1 http://lendingproguide.com/how-are-lenders-and-borrowers-affected-as-inflation-rates-change-and-they-attempt-to-protect-their-purchasing/comment-page-1/#comment-360 tissabelle Mon, 01 Jun 2009 20:38:28 +0000 http://lendingproguide.com/how-are-lenders-and-borrowers-affected-as-inflation-rates-change-and-they-attempt-to-protect-their-purchasing/323/#comment-360 Inflation lowers the value of the dollar which weakens the economy but the government can stimulate the economy by lowering interest rates. By lowering the interest rates borrowing and lending is made easier and more appealing. However, this does have repercussions since as we have seen recently...people buy more than they can afford and have their homes foreclosed on. This creates more of a strain on the economy and doesn't really protect anyone. Inflation lowers the value of the dollar which weakens the economy but the government can stimulate the economy by lowering interest rates. By lowering the interest rates borrowing and lending is made easier and more appealing. However, this does have repercussions since as we have seen recently…people buy more than they can afford and have their homes foreclosed on. This creates more of a strain on the economy and doesn’t really protect anyone.

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