That can hurt the profits that help drive stock prices and
also lead to inflation.
An upturn in bank lending, if taken too far, could
also lead to inflation.
Not exact matches
A related question I sometimes hear — which bears
also on the relationship between monetary and fiscal policy, is this: By buying securities, are you «monetizing the debt» — printing money for the government
to use — and will that inevitably
lead to higher
inflation?
Zimbabwe was long - known as southern Africa's «breadbasket» but, with a drought
also taking place at the time, the nation's vital agricultural sector collapsed,
leading to repeated famines and spectacular
inflation.
It is
also possible that a period of very low interest rates will eventually
lead to higher
inflation for land and construction work, as is normally required
to bring forth more supply of a particular good or service.
It
also lead to higher
inflation, which reduced the real value of Iceland's debts, making them easier
to repay.
The U.S. government began
to tighten monetary policy years prior
to the recession in 1958,
also known as the Eisenhower Recession, in an effort
to curb
inflation; however, prices continued
to climb and the strengthening U.S. dollar
led to a growing foreign trade deficit.
The lower costs associated with gasoline
also led to a decline in the year - on - year consumer -
inflation numbers, which came in at 2.0 percent compared
to 2.2 percent in September.
In addition
to rising interest rates, the United States is
also leading other countries in economic growth and
inflation.
US
also simply has more money
to spend -
leading to inflation in prices.
Dodelson: Again referring
to this dark energy today, there are two possibilities that
lead to optimistic branches and one is that dark energy today may not be vacuum energy, it may be something completely different; and a good piece of evidence for that is that
inflation itself require [s] dark energy, so it kind of make sense
to think, [«Well, we had some early [epoch] of dark energy which is something [we're trying
to] figure out, maybe [today] there is
also [a] new type of dark energy we are trying
to figure out and it is not vacuum energy, so that would
lead to a less pessimistic future.
[23] Practices that
lead to test - score
inflation can
also be less overt.
(Koretz
also argues that the focus on test prep in such schools has
led to more score
inflation there, making the achievement gap appear narrower than it really is.)
In addition,
to the extent higher realized
inflation leads to higher
inflation expectations — and in turn, higher interest rates — financial stocks, another big value sector,
also benefit.
But low interest rates
also may encourage overspending and unwise investment,
leading to unproductive economic activity and
inflation.
Inflation also leads to higher interest rates, which in turn
leads to lower bond prices.
The absolute valuation metrics, which incorporate dividend yield and earnings growth,
also lead to a positive, but scant, forecast of around 3.5 % after
inflation.
Team defections can
also tend
to lead to faster pay
inflation for lawyers across the firms concerned.»