In a Bank for International Settlements survey of 66 central banks, more than 80 percent of central banks report being engaged in some type of central bank digital currency (CBDC) work. 12 The motivations for this work range from payments safety and robustness for advanced economies to payments efficiency for emerging economies.
One can’t help but worry about what would happen if interest rates rose sharply. During the boom, property prices rose extremely fast, increasing collateral values and reducing the perceived riskiness of mortgage loans. Massive construction activity and heavy investment in housing and commercial property led to rapid economic growth, which reduced unemployment rates and in turn further reduced the perceived riskiness of mortgage lending.