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Originally Posted by Arne
Hmm... What about setting interest rates where Keynes would like to see them, at zero, would that turn the demand for houses into fake demand? If not, how do you think interest rates are set on a free market?
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my contention is that in a growing population there is always demand for housing.
real demand, not "fake demand".
low interest rates merely faciliatate a consumer in their purchasing power as it relates to debt service.