Sentences with phrase «asset inflation»

With a younger population, goods inflation will be stronger (buy more, save less), and asset inflation for an older generation (buy less, save more).

Most of the paper is creating asset inflation, rather than goods inflation so far.

Today's new home sales report is yet another reminder that artificial asset inflation has consequences.

On the one hand, extremely aggressive monetary policy has created record asset inflation and easy credit, artificially supporting demand.

In other words, instead of our dollars buying significantly less goods and services, they buy less assets; hence, the term asset inflation.

When investors think of holding cash in a period of sharply rising asset inflation, they often think of opportunity cost.

Therefore, it can be clearly observed that the USDJPY is a victim of assets inflation in the equity markets.

Last week, in the middle of gorging our material senses, Janet Yellen was responding to a letter from Ralph Nader, a well known consumer advocate who took the Bernanke and Yellen to task for keeping interest rates too low, resulting in asset inflation for Wall Street and the very wealthy while MAIN STREET was «rewarded» with zero interest rates and almost NO returns on passive, low - risk credit channels.

Further, the Federal Open Market Committee members may not recognize inflation when they see it, as looking at inflation solely through the prices of goods and services, while ignoring asset inflation, can lead to a repeat of the last policy error of holding rates too low for too long.

Thus, I came to the conclusion that the Fed ought to look at asset inflation as well as goods inflation somewhere in the late»90s.

That broad based asset inflation, including critically the intended recipient house price inflation, led to rising consumption, a pattern well entrenched in the U.S. economy.

On a day of considerable asset inflation and predictable market commentary, I found both articles to be refreshing reads.

But no, not only did they go down to 1.75 %, they went all the way down to 1 % in June 2003, when it was obvious that a strong recovery was underway, and the FOMC left the rate there for a full year, while asset inflation springing from additional indebtedness coming from cheap financing ruled.

This unfettered and unprecedented asset inflation is resting precariously on a stool that is about to have its legs kicked out from under it.

Even the biggest Fed doves admit that low rates created a heightened risk of asset bubbles and unstable asset inflation.

In my opinion, the main weakness of monetarism is that it fails to recognize asset inflation.

As Baby Boomers tip the balance between saving and spending, goods and services inflation may predominate over asset inflation.

On the «positive» side, some of the troubles of asset inflation get passed on to credulous foreigners because the dollar is the world's reserve currency.

The fact we've seen no surge in QE - related (consumer price) inflation (despite some dire warnings at the time, I anticipated this back in 2012), has also been reassuring — though there's precious little justification for this, as we continue to experience asset inflation instead.

We may well be experiencing the building of the mother of all bubbles in the equity markets (particularly in the developed markets), so there's where inflation went... it became asset inflation!

is in defensive & large - cap stocks, no matter how highly valued they are / become — due to a tsunami of central bank liquidity which has scarcely dented the real economy, it's mostly been redirected into asset inflation.

Before there's general inflation of hard assets and wages there could well be an acceleration in financial asset inflation:

While the Fed's asset inflation policy may not be working for most retailers, it is clearly benefiting home prices and Home Depot — they are in the right place at the right time.

I don't see the global economy heading into recession; I do see price inflation ticking up globally, and also asset inflation in some countries (China being a leading example).

The prolonged period of low interest rates has played a role in spurring record pricing and general asset inflation.

Because of their flawed model for understanding monetary policy, they ignored asset inflation, and patted themselves on the back for the lack of goods price inflation.

That broad based asset inflation, including critically the intended recipient house price inflation, led to rising consumption, a pattern well entrenched in the U.S. economy.

Because, hypothetically speaking, if gold were to be valued around production ($ 1250ish an oz) and there was considerable asset inflation (QE) then it could be viewed as very much a good alternative to bonds, and common stock.

After 2002, Greenspan's rescue took effect and the stock and housing market experienced a brief period of asset inflation, but the bottom eventually fell out in 2008 when the S&P 500 delivered a -37 % total return, which was followed by unprecedented monetary stimulus in the form of Quantitative Easing.

I agree with what Milton Friedman said that inflation is always and everywhere a monetary phenomenon, but where I differ is that monetary inflation may express itself in terms of inflation in the prices of goods and services, or in asset inflation.

He believes we're seeing signs that inflation is creeping up — asset inflation, that is, which the Fed deliberately ignores.

The asset inflation that results can drive widespread price increases.

Likewise, asset inflation would be expected to rise, which gives the Federal Reserve an opportunity to raise rates.»

There is asset inflation, and QE is pushing it.

Monetary policy is loose, and as I have stated before, loose monetary policy typically ends in some excess, whether that excess is goods price inflation, or asset inflation, or perhaps a currency panic, where foreign creditors conclude that they will not get paid back in anything near the terms that they expected when they originally lent.

Likewise, asset inflation would be expected to rise, which gives the Federal Reserve an opportunity to raise rates.»

Central banks did not view inflation broadly enough, focusing on goods price inflation, and ignoring the asset inflation that was distorting the economy.

Asset inflation has taken the place of goods and services price inflation.

If we need a recession to clear away bad debt, so that we can grow again, let's have it, and stop the asset inflation that the Fed engenders.

A painful lesson people have been forced to learn over & over throughout history — they inevitably end up paying more & more for their lunch (price inflation), or else the lunch bill only finally comes due once markets (& the economy) collapse due to speculative excess (asset inflation).

Inflation is a vague concept, because the term stretches to do duty in multiple areas: wage inflation, consumer price inflation, asset inflation, and monetary inflation, to name a few.

The company also expects home price appreciation, or asset inflation, to persist.

Just as with today's asset inflation, the last cycle's excesses were founded on easy money and the widely - held belief that prices would never be allowed to fall.

In turn, the income and asset inflation of REITs will catch up as well.

Asset inflation is an increase in the prices of assets (or a subgroup of assets) without equivalent improvement in the ability to create more goods in the future.

Because of demographics, his actions did not lead to price inflation, but asset inflation.

I think it is useful to make these distinctions, because most people when they hear the word «inflation» think only of goods price inflation, and not of monetary or asset inflation.