House Prices, Rents, and Inflation
Asset values are just a function of current earnings, anticipated earnings growth, and the discount rate
House prices have soared across the rich world since the start of the pandemic, with the median country experiencing an increase of more than 10% since the start of 2020.
So far, these increases have far outpaced changes in average wages as well as conventional measures of consumer prices. That’s starting to fuel a debate about whether inflation is being…