Intersectoral reallocation of resources doesn’t mean an overall increase in demand, and hence even influx of labour and capital into YIMBY-initiated housebuilding won’t cause higher inflation economy-wide—if anything, it pushes it down due to expanded supply bringing down rents, and as you note housing is an important part of PCE.
Generally, you would prefer lower interest rates from the perspective of LMICs, because you risk debt crises when high US interest rates intersect with LMIC dollar denominated debts, plus everything from food subsidies to investing in health/​education/​infrastructure becomes far more difficult.
If increased homebuilding does not raise inflation economy-wide, might it still make credit a bit more expensive by raising competition for credit?
If more direct effects on interest rates of increased homebuilding are smaller than effects on policy rates via lower rent-->lower inflation, should we surmise that US yimbyism may be a useful intervention for augmenting global development and reducing global poverty?
Intersectoral reallocation of resources doesn’t mean an overall increase in demand, and hence even influx of labour and capital into YIMBY-initiated housebuilding won’t cause higher inflation economy-wide—if anything, it pushes it down due to expanded supply bringing down rents, and as you note housing is an important part of PCE.
Generally, you would prefer lower interest rates from the perspective of LMICs, because you risk debt crises when high US interest rates intersect with LMIC dollar denominated debts, plus everything from food subsidies to investing in health/​education/​infrastructure becomes far more difficult.
If increased homebuilding does not raise inflation economy-wide, might it still make credit a bit more expensive by raising competition for credit?
If more direct effects on interest rates of increased homebuilding are smaller than effects on policy rates via lower rent-->lower inflation, should we surmise that US yimbyism may be a useful intervention for augmenting global development and reducing global poverty?