Sentences with phrase «in the money supply»

As such, growth in the money supply boosted asset prices.

The research firm compared the difference between the change in money supply growth and nominal GDP growth and Chinese stock prices.

Money supply is the amount of money that exits, for this post I'll include credit in money supply because credit, to a certain extent, is purchasing power.

As you can see, the explosion in the balance sheet has caused virtually no equivalent jump in the money supply out there.

After peaks in money supply growth rates are reached, it takes quite some time for the new money to spread out and exert its full effect on prices.

Stocks rise when the rate - of - change in the money supply exceeds the rate - of - change in inflation.

But the unprecedented increase in the money supply has not produced the intended the results.

The mint bought the gold, sold the gold, that looks like profit to me, and no change in money supply.

Assuming constant velocity, inflation is caused by the difference between the growth in the money supply and growth in real output.

By itself, none of this would be overly concerning, but in conjunction with foaming - at - the - mouth bullish sentiment, stretched valuations and a sharp slowdown in money supply growth, it is hard to be anything but concerned.

Cutting interest rates, deficit spending and quantitative easing — printing money — all result in an increase in money supply which cause price bubbles in economies.

The People's Bank of China is aiming for 15 per cent growth in the money supply in 2005.

However, the velocity of money trend has eased because the expansion in the money supply is...

A passive tightening of monetary policy occurs whenever the Fed allows total current dollar spending to fall, either through a endogenous fall in the money supply or through an unchecked decrease in money velocity.

I mean, for example, contractions in the money supply seem to have both a (macro --RRB- economic reality outside of the network and specific effects within the network

This is some indication that the economy — especially the US economy — is weakening, which I attribute to a lagged effect of a slow - down in money supply growth that happened a while ago.

Hence, there is a big push in money supply growth in Europe and we already see that economic data in Europe is beginning to improve.

Reducing the human factor in money supply and institutional involvement in money distribution to the minimum is an important step forward for our society, and hopefully, we will witness a widespread economic reformation in an attempt to solve the inherent problems with paper money.

By focusing on total dollar spending, the Fed will be fostering a stable monetary environment where movements in money supply and money demand are offsetting each other.»

By buying USD, the Canadian government reduces the number of USD in the money supply, thus making the USD rarer and so more valuable compared to the CAD.

The surge in the U.S. money supply was thus matched by a surge in the money supplies of countries linked to the U.S. dollar.

A now well - founded principle of economics is that excess liquidity in the money supply can lead to price inflation; monetary policy was expansive during the 1970s, which could explain the rampant inflation at the time.

Some people believe that inflation is caused by an increase in the money supply when the banks print more notes engage in fractional reserve lending.

As far as i know for every dollar / euro / yen in the money supply pool there is a corresponding IOU in a bank or central bank.

But the huge growth in money supplies flash a warning signal that hyperinflation could come later and obliterate the value of all fixed income investments.

They also use market liquidity and volatility as a proxy for market microstructure issues and inflation, current account, growth rate in money supply, industrial production and the unemployment rate for macroeconomic factors.

This is true for currency as well: «Monetary inflation is a sustained increase in the money supply of a country.»

As noted above, this passive tightening in monetary policy implies there would be a decline in the money supply and money velocity occurring during this time.

One beneficial aspect of the modern age is that the growth of massive dependent classes — in America in particular, almost half of the citizenry rely on the government for significant portions of their income — and the growth in the money supply which results in significant inflation, has traditionally been «solved» by war.

Reserve requirements are an important tool the Fed can use to achieve desired changes in the money supply.

He did not believe that a steady rate of growth in the money supply would eliminate business cycle booms and busts.

Rather than the Fed pursuing a policy resulting in some steady rate of growth in the money supply, I would suggest that the Fed attempt to produce a steady rate of growth in the sum of the credit it creates and the credit created by depository institutions, i.e., commercial banks, savings associations and credit unions.

Bank must have willing and creditworthy borrowers walk into their offices before any increase in the money supply can take place.

Because of the increase in the money supply, overall prices do not fall.

The decline in the money supply and velocity are the result of firms and households responding to a bleaker economic outlook.

Due to potentially - large oscillations in the desire to hold cash and to the fact that changes in the money supply can take years to impact the cost of living, this theoretical rate of purchasing - power change will tend to be inaccurate over periods of two years or less but should approximate the actual rate of purchasing - power change over periods of five years or more.

By using the known rates of increase in the money supply and the population and a «guesstimate» of the rate of increase in labour productivity we can arrive at a theoretical rate of change for the purchasing power of money.

Increases in the money supply are therefore generally considered to be harmless or even beneficial as long as the purchasing - power of money is perceived to be fairly stable *.

He reasoned that because inflation depends on growth in the money supply, inflation would fall if he brought that growth down.

Since the Fed quit publishing M3 data, economists who have attempted to re-create the index from other available data have estimated M3 data would today be reporting upwards of a 10 - percent increase in the money supply, a high level by historical standards.

In leading the revival of the old Quantity Theory, Friedman emphasised that money and prices were closely linked, and that increases in the money supply would lead mainly to higher prices, with no long term increase in real activity.

Liquidity is how much there is in the money supply.

Contractionary monetary policy slows the rate of growth in the money supply or outright decreases the money supply in order to control inflation; while sometimes necessary, contractionary monetary policy can slow economic growth, increase unemployment and depress borrowing and spending by consumers and businesses.