Sentences with phrase «if inflation increases»

For instance, if inflation increases by 1.5 % six months following issuance, the value of a $ 1,000 real return bond at the end of the six - month period would be $ 1,015.

If inflation increases to 3 %, then total credit must grow by 5 %, or by $ 3.4 trillion, to get there.

This means their money will actually lose value over time if inflation increases at historical rates of between 2 % and 3 % annually.

But being too conservative can hurt your returns if inflation increases.

Not exact matches

But the general level of prices can rise due to inflation, leading to an increase in nominal GDP even if the volume of goods and services produced is unchanged.

Even if Canada doesn't start dropping payloads of cash itself — something Cooper says he does not foresee in the next three years, at least — the ripple effect of a central bank explicitly targeting higher inflation and adopting formerly verboten measures to get it would be felt on these shores in the form of increased global volatility.

If we were trying to hold the exchange rate unchanged instead of targeting inflation, we would probably need to match U.S. interest rate increases in lockstep; but doing so would risk pushing our inflation rate back below our target.

If true, expect more fuel to be added to the commodities fire, further increasing drag on global economic activity while adding to the already worrisome upward pressure on inflation.

There are some signs that inflation could come out of hiding in the next 18 months, but I would be very surprised if we saw a substantial increase in long rates in the coming couple of years just because there are too many disinflationary macro headwinds.

If the economy continues to heat up and inflation rises, that might spur the Federal Reserve to increase interest rates faster than expected.

The terms - of - trade shock we are experiencing, which has already translated into an increase in excess capacity and downward pressure on inflation, has the potential to act as such a trigger, if left unaddressed.

Accordingly, the Governing Council agreed that acting at this time was consistent both with the Bank's primary mission — the pursuit of its inflation target — as well as helping to manage financial stability risks, even if there could be some increase in financial vulnerabilities in the process.

If it focuses on maintaining the growth necessary to meet its inflation target, there is the risk of further increases in leverage and asset prices setting the stage for trouble down the road.

He claimed that the price of oil would soon fall and that inflation would increase, leaving Russians «in an economic cemetery» if they should fail to cultivate these industries.

If inflation is below the target path, the Fed tries to increase price growth, regardless of the percent change in prices.

In my experience, a dividend growth portfolio strategy seems to be performing better as an investment than owning a home, in my honest opinion, I would rather rent in a great area than own a home in that area, jeez if I were able to get a lease agreement for 10 years indexed at inflation or at 2.5 % increase annually I would take it and take my down payment and invest it in my portfolio, and continue to contribute the max in my 401K, HSA, and Roth IRA, while enjoying living in a low tax bracket because of my contributions.

If inflation is likely to be too high for too long, the Reserve Bank Board would typically increase the cash rate to bring inflation back to the target.

A recent pullback in headline consumer price inflation across developed economies has challenged the notion of steady, if unspectacular, increases in inflation from depressed levels.

* You can even purchase an annuity that will last throughout your spouse's lifetime, continue paying your beneficiaries if you die within a certain time frame, or increase payments to keep up with inflation.

Because inflation increases the costs of goods and services, it's possible that your purchasing power will suffer in retirement — even if the inflation rate is low.

If median rent increased at the same pace of inflation, that $ 425 in 1995 would translate to $ 680 today.

If the dominant shock were slower productivity one might expect to see an increase in inflation.

At the same time, however, the enormous increase in government liabilities stemming from an ongoing budget deficit and huge financial rescue efforts is likely to result in normal if not elevated levels of inflation as the economy recovers.

The risk is that if the increase in demand outstrips the increase in supply, inflation will rise unless the central bank raises interest rates.

If inflation rises, The Fed is likely to increase interest rates faster to try and slow inflation's acceleration.

For example, if inflation and interest rates increase rapidly soon, it may be prudent to add more bonds to your portfolio or replace cash ballast with intermediate term bonds.

Even if the combination of Brexit and technology keeps UK GDP growth and inflation at modest levels, the risk of global bond yields and real yields rising further has increased.

The ECB president was very forthright in explaining that if the inflation data failed to rise the ECB Governing Council had TOTAL DISCRETION to increase the QE program.

And if the fiscal problem becomes unstable — more deficit to finance than security markets will allow, the Fed will obey its political masters and finance the deficit by a hyper - inflation, or hyper - tax, as a burgeoning inflation simply taxes all fixed dollar wealth — bonds, dollars, life insurance values, etc. — by the rate of price level increase.

Just to be clear, if monetary inflation caused a nearly - immediate and uniform increase in prices throughout the economy then it would never have been popular.

If unemployment is low and inflation is expected to rise above the Fed's long - term objective of 2 %, the Fed may decide to increase rates to prevent higher inflation and the economy from overheating.

Some economists have argued, for example, that if a central bank keeps real interest rates low (but positive) over the long term and allows for moderate inflation, a country with its own currency can increase spending very substantially over the long term without increasing taxes. PEF Blogger, Arun Dubois, has blogged extensively about some of these other perspectives.

Is an increase from 2.6 % of GDP in 1981 to 3.1 % of GDP in 2012 unsustainable?  Yes, I suppose so, if this rate of increase continues for another few centuries. The same argument the CFIB makes for municipal spending could be made for corporate profits but far moreso. After adjusting for inflation, corporate profits have increased by 245 % since 1992, doubling as a share of GDP and growing at a rate of ten times Canadaâ $ ™ s cumulative population growth of just 23 % since 1992.

This transient view of inflation ignores the fact that if wages / salaries didn't increase by 100 % over the 3 year timeframe in my example then people are permanently affected by the increase in house prices (unless and until their wages catch up).

If someone handed me $ 10,000,000 with the imperative to construct a portfolio that will, comprehensively, make money in all environments, increase wealth by at least 5 % in excess of the rate of inflation over the long term, and do it in a way that the total dividends paid out would be greater each year, these are the companies I would choose.

«As much as there's a lot of hoopla about this increased lending and profitability, all the lending in the world is not going to matter if Treasurys are right about growth and inflation going forward given this flattening of this yield curve,» he also said on «Closing Bell.»

If the bank were to tighten its monetary policy too quickly it could push the currency up even faster, in turn increasing the downward pressure on inflation.

If central banks implement QE and increase the money supply too quickly, it can lead to inflation.

Risks to the inflation outlook would arise if these increases were to accelerate as the economy strengthens, or if they spread more widely to other bargaining streams, pushing aggregate wages growth to levels inconsistent with maintaining low inflation.

ECB President Mario Draghi said the new plan could and would be reversed if required: «If, in the meantime, the outlook becomes less favourable or if financial conditions become inconsistent with further progress towards a sustained adjustment of the path of inflation, the Governing Council intends to increase the programme in terms of size and / or duration.&raquif required: «If, in the meantime, the outlook becomes less favourable or if financial conditions become inconsistent with further progress towards a sustained adjustment of the path of inflation, the Governing Council intends to increase the programme in terms of size and / or duration.&raquIf, in the meantime, the outlook becomes less favourable or if financial conditions become inconsistent with further progress towards a sustained adjustment of the path of inflation, the Governing Council intends to increase the programme in terms of size and / or duration.&raquif financial conditions become inconsistent with further progress towards a sustained adjustment of the path of inflation, the Governing Council intends to increase the programme in terms of size and / or duration.»

For example, if inflation is expected to increase in the future, individual and institutional investors may demand higher rates from their financial instruments.

Thereafter, most central banks adjusted monetary policy to promote consistent increases in the money supply, even if it promoted chronic price inflation and encouraged debtors to borrow too much.

Even if real estate only tracks inflation over the long run, a 3 % increase on a property where you put 20 % down is a 15 % cash - on - cash return.

If they are coupled with regulations that force medical providers to be open about their pricing and allow new medical providers to enter the market (as along as they meet quality standards), the creation of a vast new class of healthcare consumers could help slow medical inflation and increase the wages of workers.

If you sell jack for 30 million you will still be short in future and with increasing prices and inflation you will buy a worse player for 45 million as a replacement.

But even if the returns to RSML end up amounting to no more than $ 20 million per annum, the total take will be in excess of $ 1 billion over the lifetime of the contract if increases in the levy merely tracks inflation in insurance premiums over the last decade.

Although if it happens too fast, it would increase inflation (because it would increase the amount of money in circulation without increasing the amount of goods and services in the economy).

Cuomo called for replacing automatic increases in the budget on various items with a more reasonable formula, contending that if education and Medicaid rose only at the rate of inflation, there would be only a $ 1 billion deficit.

This year we saw the highest increases in electricity, liquid fuel and transport fares and if government is telling us that inflation has, interest rate down etc

If that does not happen, and the EP vetoes the proposal, the EU will use the «roll - over method `, where the previous budget is used (increased with an inflation of correction of two percent) in a month - by - month budgeting of the EU's expenditures.