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What do you think will happen if your country falls into a recession due to the continuous inflation

ÀÛ¼ºÀÚ: Ȳ*ÇÏ
2022-11-14 1756

ȸ¿ø´ÔÀÇ ¿µÀÛ¹®

In the era after Covid-19 pandemic, the world fall into a deep recession. As an economic recovery effort, the central bank has decided to increase the interest rate since the last quater of last year. The central bank controls interest rate to stabilize prices in nation wide. Their goal is keeping inflation in 2% every year but it is already over its standard. Many people have had hard time due to high price of goods, interest rate and dropping their assets like houses. It is well known that house price in Korea has steadly increased so people were willing to invest it with debt from a bank. However, its price has fallen since last year. People couldn't pay their debt back because of the high interest rate and dropping of house price. Some people would like to sell thier house but nobody consider to purchase it because professionals expect that it will drop more for over a year. If the government fail to keep prices, many people will go bankrupt. We might have the Great Depression

°­»ç´ÔÀÇ Ã·»è±³Á¤ ³»¿ë

Good day, Sir Hwang!
Thank you so much for taking time in answering the question. Your ideas and opinions are on point. Keep it up! :)
~ T. Camille

In the era after Covid-19 pandemic, the world fall into a deep recession. 
>> In the era after Covid-19 pandemic, the world falls into a deep recession. 
As an economic recovery effort, the central bank has decided to increase the interest rate since the last quater of last year. 
>> As an economic recovery effort, the central bank has decided to increase the interest rate since the last quarter of last year. 
The central bank controls interest rate to stabilize prices in nation wide. 
>> The central bank controls interest rate to stabilize prices nationwide. 
Their goal is keeping inflation in 2% every year but it is already over its standard. 
>> CORRECT! 
Many people have had hard time due to high price of goods, interest rate and dropping their assets like houses. 
>> CORRECT! 
It is well known that house price in Korea has steadly increased so people were willing to invest it with debt from a bank. 
>> It is well known that house price in Korea has steadily increased so people were willing to invest it with debt from a bank. 
However, its price has fallen since last year. 
>> CORRECT! 
People couldn't pay their debt back because of the high interest rate and dropping of house price. 
>> CORRECT! 
Some people would like to sell thier house but nobody consider to purchase it because professionals expect that it will drop more for over a year. 
>> Some people would like to sell their house but nobody considers to purchase it because professionals expect that it will drop more for over a year. 
If the government fail to keep prices, many people will go bankrupt. 
>> If the government fails to keep prices, many people will go bankrupt. 
We might have the Great Depression
>> We might have the Great Depression.
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