Money “hoarded” in banks obviously means more money is available for borrowing for things like home loans and other capital investments. This should reflect in inflation if real estate and stocks are included in basket of goods used to gauge inflation.
Confusion is created, per my limited understanding, by omitting variations in prices of things like education and real estate from standard calculations of inflation. Many governments are still issuing separate data for real estate, but layman doesn’t care for that.
Money “hoarded” in banks obviously means more money is available for borrowing for things like home loans and other capital investments. This should reflect in inflation if real estate and stocks are included in basket of goods used to gauge inflation.
Confusion is created, per my limited understanding, by omitting variations in prices of things like education and real estate from standard calculations of inflation. Many governments are still issuing separate data for real estate, but layman doesn’t care for that.