Sentences with phrase «for deflationary»

The world seems to be heading for a deflationary abyss with governments around the world flinging money at the problem with no worries about sowing the seeds of inflation later.
Is this the right portfolio for a deflationary economy?
Agree but I think we're still in for a deflationary period before we get to an inflationary one.
Dr. Gary Shilling was way ahead of most commentators in arguing for a deflationary environment.

Not exact matches

If the public starts to doubt, it may demand higher wages or payments to compensate for expected price increases, or delay investments or purchases in anticipation of deflationary pressures.
«The difficult task for the BOJ is breaking the deflationary mentality that exists in Japan,» he said on CNBC Asia's «Cash Flow.»
Lakos - Bujas said he and his team view «normalizing inflation and declining global deflationary risks as a positive for equities at this stage of the cycle, and believe there has been some overreaction to inflation headlines lately.»
Other reasons for an increase include heading off a deflationary debt spiral, and conversely, the risk of very high inflation.
As a result, we anticipate that firms may increasingly try to minimize their market data costs by turning to lite versions of existing terminals or piece together newly available alternatives — a trend we view as deflationary for the industry.
For example, fixed - income securities, defensive stocks and blue - chip companies paying dividends can afford protection in deflationary environments.
For what it's worth though, seems to me the liquidity trap / demand slump story is a better description of reality, it's not clear why your story would produce disinflation / deflationary pressures.
But the deflationary pressures are only temporary and inflation caused by energy supply failure will see huge inflation figures for at least the next few years.
In the US and Europe, deflationary pressures increase the ability of central banks to loosen monetary conditions, and because too many economists assume too easily that what is likely to be true in the US must be true everywhere, deflationary pressures in China are unleashing calls for lower interest rates and greater credit expansion in China.
So there is no appetite for disinflationary pressure in today's global environment, whereas two decades ago the deflationary pressures that Japan might have unleashed were welcome.
How long it takes for China to overcome deflationary pressures depends, I think, really on two very different sets of policies.
But economists worry that the commodity mess reflects a weakening global economy, lowering the value of trade worldwide and perhaps even pushing some countries into the same kind of deflationary spiral that has hampered the Japanese economy for decades.
Even for knowing absolutely nothing about what's happened to Japanese interest rates over the past 20 years, as they've followed the deflationary policy the GOP seems to prefer.
One of the most worrisome areas is Europe, which has long struggled with chronic low growth and technically crossed into deflationary territory with a negative inflation reading for December.
Against a backdrop of deflation around the world, China's producer price index and purchase price index have been dropping for several years, and the latter is lower than the producer price index, further indicating that China shouldered the external deflationary pressure.
However, at least for now, it appears that the deflationary pressures of the past few years are beginning to subside rather quickly.
The one sector where costs have continued to inflate every year looks to be set for technology to have its deflationary effect.
Euro - area consumer prices fell on an annual basis last month for the first time in more than five years and ECB President Mario Draghi has warned that the deflationary risks may demand a response.
Preston: [00:05:21] They're trying to pump as much cash into the system as possible because there are these enormous deflationary forces that have been at play for 35 years here in the U.S. at least.
Earlier fears of a deflationary spiral appear to have been allayed, but with a considerable output gap to close, there is little prospect of demand - induced price rises for some time.
Gold's purchasing power, its relative value versus commodities, has risen for centuries during deflationary periods.
These are the primary explanations for sub-par growth, near - deflationary conditions, and, most recently, negative interest rates in Japan and the Eurozone (together with the euro - linked economies of Denmark, Sweden and Switzerland).
Millar stresses the periodic upward revaluation of gold as the mechanism for defeating a deflationary debt depression at the end of an economic cycle.
«For the next two years, deflationary pressure is going to be dominant, and it is going to become a time bomb down the line if and when we keep monetizing large deficits.
Central banks will try everything to avoid or reverse a deflationary collapse in paper asset markets because a deflationary collapse is «game over» for their credibility, governments, and politicians.
If the global recovery were to fall short of current expectations, prospects for the Australian economy would be adversely affected and global deflationary forces could gain momentum.
In today's issue, you'll read how desperately Japan has been trying to shed the «deflationary curse» it's been haunted by for decades.
This has now been negative since May, portraying a pace of economic activity that is well below potential and therefore continues to be consistent with both (a) a continuing ultimately deflationary economic Supercycle Bear Market Period, or Winter, and (b) our working model for after - shock, double double - dip business cycle contractions over the next four years.
While the current cyclical upswing will help to alleviate deflationary pressures in the short term, there remain ongoing structural concerns for the Japanese economy.
However, at its meeting in July, the Bank of Japan (BoJ) highlighted how far the country's economy still has to go to overcome deflationary pressures, as the central bank further reduced its inflation forecasts for the period up to early 2019.
Ditto for the globalization of production and the other deflationary forces we've been discussing since we wrote two books on deflation in the late 1990s, Deflation: Why it's coming, whether it's good or bad, and how it will affect your investments, business and personal affairs (1998) and Deflation: How to survive and thrive in the coming wave of deflation (1999).
As one private equity investor points out, protecting under - performing sectors might have been wise in deflationary times (to keep unemployment from ballooning) though as reflation returns the need for productivity to restrain costs could present an argument for reform in the worst - performing sectors.
For someone who has never been good at keeping a savings account this is a miracle and I owe it to bitcoins deflationary nature.
Bill points out that this concept of the fatal power of the disease, provided by Silkworth, became in AA a powerful deflationary tool, shattering the ego at depth and laying the subject open for conversion.
Smart analysts in the City are pointing out that because the private sector - household and business - is paying down debt at a rate of knots, this is not the time for the Government to apply a savage deflationary squeeze as well.
Balls said: «I believe it would be economic madness for George Osborne to go ahead with deflationary spending cuts and the VAT hike that his advisers have been whispering about to the newspapers.
If there is no, or negative inflation, the COLA for that year will be zero — in other words, even in a deflationary environment, Social Security benefits aren't adjusted downward.
In our view, the ultimate impact of these forces is deflationary, and against the backdrop of falling yields and lower investment returns, investors have been willing to pay up for growth.
Particularly, in a situation such as that which exists today, where the shadow banking system responsible for much of the last few years of credit expansion is now dramatically contracting outside any possible control of the central banking authorities, there is no alternative but deflationary collapse with a concomitant moon shot in the value of the world's reserve currency v. all other asset classes.
Switzerland accounts for 5.2 % of the EU's imports, and these imports will now be slightly cheaper, which puts some deflationary pressure on the EU, particularly in the Swiss - specialized industries of chemicals, medicinal products, machinery, instruments and time pieces.
We have been in a deflationary world for some time now.
With much of the global economy struggling under the weight of massive debt loads and unfavorable demographic trends, it's an open question whether the next few years will involve higher interest rates — as most experts have expected, and continue to expect — or whether these deflationary forces will keep interest rates low for a while longer.
The graph in the second article shows that it takes a long time for inflation to come back after the economy has been in a strongly deflationary mode, where bad debts have to be eliminated one way or another.
At that time, everyone was concerned with Japan's aging population, its tremendous sovereign debt, its deflationary environment, and the fact that corporate management had little concern for shareholders.
I think that the deflationary forces are much too strong for the failed reflationary strategies being pursued.
They believe that we are in for another round of a 2008 - style deflationary crash... or worse.
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