Moreover, by neutralising the need to hedge against inflation and in particular by minimising the inflation risk premium in long-term interest rates, price stability contributes to the channelling of real resources towards production and investment. Thus it favours economic and employment growth.
Home equity, built over time, has also become an important source of cash for other investments, including educational expenses. Moreover, homeownership strengthens communities by turning residents into investors with an ownership interest in the places they live.