In many countries, it raises the user cost of capital by raising the effective tax rate on business investment. [9] High inflation also increases uncertainty and distorts relative price signals relevant for investment decisions. And it may slow down productivity growth, as occurred in the United States in the 1970s. [10] Therefore, the green transition would not thrive in a high inflation environment.
Preventable foreclosures harm not only the affected borrowers and their communities but also, through their effects on the housing market, the broader economy and the financial system as well. Although a number of efforts are underway to address the problem of preventable foreclosures, more needs to be done. Generally speaking, the most attractive approaches to reducing preventable foreclosures fall into two main categories.