Much of the ongoing inflationary pressure at this stage also derives from the indirect effects on inflation of cost pressures in the production chain. In addition, there is a concern that second-round effects could materialise if consumers or firms attempt to compensate for any loss in purchasing power stemming from the increase in commodity prices by pushing for higher wages or prices.
Developing an effective securitization model is not easy – according to one economic historian, mortgage securitization schemes were tried and abandoned at least six times between 1870 and 1940. 1 Eventually, experience provided three principles for successful mortgage securitization.