For the moment, the economy is being supported
by asset price inflation.
Not exact matches
In the grander scheme of things, and as a red flag, this is another
asset class that has enormously benefited from
asset price inflation, stirred up
by the Fed's well - targeted monetary policies since the Financial Crisis.
Perception of the debt - overhead problem is concealed
by the characteristic feature of today's finance capitalism: an
asset -
price inflation of property markets, that is, rising land and stock market
prices.
Mr. Rajan added that the public may choose to look through current «unnatural»
asset price inflation induced
by unconventional monetary policies and instead exercise prudence in risk management on concerns of future volatility.
Having rapidly pulled ahead over the past three decades, China must remain free of rentier ideology that imagines wealth to be created
by debt - leveraged
inflation of real - estate and financial
asset prices.
Specifically the
asset price inflation that you've seen has largely been ignored
by Keynesians in the last two bubbles.
Asset -
price inflation fueled
by the Federal Reserve — is giving way to debt deflation.
For example, if US CPI
inflation data come in a tenth of a percentage higher than what was being
priced into the market before the news release, we can back out how sensitive the market is to that information
by watching how
asset prices react immediately following.
The change is from
price stability, to returning
inflation to levels consistent with its mandate, which means they will try to inflate, and let it into the goods and services markets, rather than merely using it to prop up the
prices of
assets backed
by debt.
Big electricity and energy utilities are boring dividend plays, with heavily regulated core
assets subject to rules that only let them raise
prices by a formula based on
inflation rates.
Our emphasis has been on the risk posed to
asset prices by relatively demanding valuations in many
asset classes and the risks posed
by rising
inflation pressure and the implications of this for medium - term central bank accommodation.
Corn has appeal as an investable
asset because it can serve as a hedge against
inflation brought about
by increases in food
prices.
Since property is a real
asset, it offers good protection against
inflation and property
prices generally increase
by at least the annual rate of
inflation.