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One more cost is forgone interest.
An analysis by IW Köln, which takes into account mortgage rates, forgone interest from other investments and likely future price rises, concludes that changing economic conditions more than justify the rise in prices.A thriving property market would help nudge Germany away from an export-centred growth model that looks in danger of running out of steam.
Unirule calculates the forgone interest amounted to about 1.16 trillion yuan in 2011, about 2.6% of GDP.Voluntary exileTo escape this financial repression, savers have sought refuge first in the stockmarket and then in the property market.
Similar(55)
Creditors, including General Electric's GE Money unit, have agreed to forgo interest on loans for now, a person briefed on the negotiations said.
Of course, with interest rates as low as they are now, customers would not have to forgo much interest for the benefit of obtaining unlimited insurance on their accounts through 2012.
Investors pay for the call option by forgoing some interest on the debt.
Savers are the ones financing this by forgoing normal interest rates, but they will never get their day in court.
The series forgoes any interest in the novel as a treatise on systems of production and consumption.
The accounts losing the insurance are used by businesses, municipalities and other entities like nonprofits that are willing to forgo any interest in order to have immediate access to their large pools of cash.
A Labor Department report showing minimal consumer inflation last month and a Federal Reserve survey of regional economies that found signs of slackening economic growth did little yesterday to change the prevailing belief that the Federal Reserve would probably forgo raising interest rates again when it meets in two weeks but might have to do so later.
Worse yet, "people literally keep their money in cash and forgo the interest," Wahedna said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com