«The benefits of tax reform, global synchronized growth, [and] employment gains will extend the life of our economic expansion and
eventually lead to inflation and higher interest rates.
You don't need to be an economist to understand that increasing the money supply
eventually leads to inflation, which in turn erodes the value of your money.
Not exact matches
This boom in real estate prices, the rise in CPI
inflation, as well as the desire of our monetary authorities
to achieve price stability and impose
inflation targeting,
eventually led to the brisk intervention of the Bank of Canada.
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.
And while easy money
eventually leads to higher
inflation, that threat could still be several years away.
An improving growth backdrop should
eventually lead to a sustainable move higher in eurozone
inflation, justifying a removal of monetary accommodation.
The authors believe that governments will try
to do that and
eventually fail, because credit creation will
eventually lead to significant
inflation.
In addition, if we believe that the massive increase in the money supply will
eventually lead to higher
inflation, there is some degree of long - term
inflation protection in core real estate.