Macroeconomics_and_International_Law

Macroeconomics and International This article talks about how the Turkish government is introducing mortgages for the first time in the country’s history. The government would like to be able to offer people a way to be able to afford housing, especially when 70% of the population owns a house, and make some money for the economy. The interest rates are being negotiated, most economist state that rate would have to be very low around 1% in order to entice people to take out mortgages, instead of the traditional way of purchasing a house by borrowing from friends and family and/or saving for years. With affordable mortgages becoming available to the Turkish people, this means not only being able to afford one’s own home. It also means that banks will be have more people willing to take out mortgages so there will be more interest earned which helps that banks earn money. The money that is earned on interest can be loaned out for other mortgages and earn even more interest. So the banks are helped by the introduction of mortgages. Another major area affected by the introduction of mortgages is employment. With an easier way to purchase a house than saving all your life and borrowing from family and friends, there will be a housing boom as people want to purchase their own house. With the housing boom come jobs. Jobs to build everything that makes a house, jobs to sell the house, jobs to build stuff to furnish the house, and jobs to build the roads. There will be an increase in the employment market, not only from the jobs associated with the housing boom but from people moving into the news housesWhen there are more people are working, they are earning money and be more willing to spend the money on things. Once this money is spent it goes back into the Turkish economy where it can be used for loans to generate more interest, or put back into the country to generate more money. http://www.ft.com/cms/s/64e8cf3e-c291-11db-9e1c-000b5df10621.html