Sentences with phrase «inflation leads to inflation»

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.

So that policy response is going to lead to slightly higher inflation in terms of wages and slightly higher interest rates, and the market had to respond to that.

Bernanke denied his actions would lead to out - of - control inflation.

Many on the right are understandably concerned by the Fed's unprecedented policy actions, fearing they will lead to dramatically higher inflation and economic instability.

'' «Good» inflation is a consequence of an improved growth backdrop, leading to an increase in wages that pushes up prices and services,» it said.

Spending on the Vietnam War and the War on Poverty led to inflation.

«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.

A stronger dollar, lower inflation and a more dovish U.S. Federal Reserve may lead the central bank to increase rates twice in 2017, JP Morgan said.

A related question I sometimes hear — which bears also on the relationship between monetary and fiscal policy, is this: By buying securities, are you «monetizing the debt» — printing money for the government to use — and will that inevitably lead to higher inflation?

Hence the question: Is it reasonable to expect that marginally looser policies would now lead to more than tripling of the growth rate (to 1.5 - 2 percent) over the next two years, while raising the inflation rate from -0.3 percent to 2 percent — as the Bank of Japan is promising?

He said that even if U.S. inflation numbers come in better than expected they would not lead to a sustained dollar recovery but a short - term gain.

But when the Bank of Canada started managing inflation in the early 1990s, rates fell, ultimately leading to a surge in home ownership.

Will that trend lead to tightening conditions and then inflation pressure?

Traders are suddenly worried about interest rates (although anyone older than 30 has to be amused that 2.85 % on the Treasury 10 - year is a source of panic), worried about inflation (although after the last decade of stagnant wages, Friday's 2.9 % rise should be cheered, not jeered), and worried about a tax - fueled spike in growth (with this report from Powell's Atlanta colleagues leading the way.)

We would say the US is growing faster than its real potential GDP, which ultimately leads to a bit of an uptick in inflation, but at the moment we remain pretty optimistic.

The drop comes despite that the fact that many have warned that Trump's policies will lead to massive inflation.

«It would lead to inflation, price increases and in some cases shortages of food.»

Critics of the bond buying programs, known as quantitative easing or QE, warned that it would lead to runaway inflation.

Policy makers responded with more than a year of restrictive policies that slowed the economy and created a credit crunch that has been particularly severe for medium and small firms and that only recently has led to a moderation of inflation.

Zimbabwe was long - known as southern Africa's «breadbasket» but, with a drought also taking place at the time, the nation's vital agricultural sector collapsed, leading to repeated famines and spectacular inflation.

These markets have focused on the probability of increased inflation and more Federal Reserve rate hikes, leading to the selling.

He brought back free - market economic policies, which led to lower inflation and even an economic boom in the late»70s.

But on the flip side, many economists argue that tariffs would just lead to artificial price inflation.

Because inflation is factored into the projected rate of investment return for a fund, any reduction in the assumed inflation rate can lead to the the fund reducing its projected rate for its investments.

If you have 30 years in retirement, a «safe» strategy may not grow your assets enough to keep pace or outpace inflation, which could lead to struggles down the line to maintain your standard of living or manage a big medical bill, Stinchcombe said.

According to an Associated Press report, a lack of competitive pressure is a major factor leading to domestic fares growing faster than inflation.

She has long argued that an extraordinary amount of monetary stimulus would not lead to runaway inflation because economic activity was so depressed.

Higher wages can point to higher inflation, which, in turn, could lead the Fed to raise interest rates more aggressively.

RWAs are used to calculate bank capital ratios (a measure of stability), and any RWA inflation could lead to a need for more capital.

«If global sentiment remains strong and inflation muted, then financial conditions could remain loose into the medium term, leading to a build - up of financial vulnerabilities in advanced and emerging market economies alike.

The fuel price increases will filter through the economy, said McTeague, leading to less discretionary spending, higher inflation rates and fuel premium increases for truck, rail and air transport of goods.

The environment of continuing monetary accommodation — necessary to support activity and boost inflation — may lead to a continued search for yield where there is too much money chasing too few yielding assets, pushing investors beyond their traditional habitats.

In the Doug Purvis Memorial Lecture, Governor Stephen S. Poloz shows how changing the mix of monetary and fiscal policies can yield the same outcomes for growth and inflation, but lead to different results for public sector and private sector debt levels, which can impact financial stability.

But having more room to cut rates isn't the only reason leading some economists to flirt with higher inflation.

Workers expect their earnings to keep pace with inflation, and a more substantial rate will likely lead to demands for ever higher wages.

Finally, in a nominal GDP targeting regime, a decline in r - star caused by slower trend growth automatically leads to a higher rate of trend inflation, providing a larger buffer to respond to economic downturns.

The inflation wars of the 1970s and 1980s led to a broad consensus on two fronts among academics and policymakers: First, central banks are responsible and accountable for price stability, which was often acknowledged through the formal adoption of an inflation targeting framework.

That led to inflation (expected to reach 4 % by year end) and bubbles in the real estate and stock markets.

In EMs, GDP growth has picked up, from 3.6 % in 3Q16 to 4.4 % in 3Q17, leading to a reduction in excess capacity and bottoming of inflation.

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.

Over the past century, monetary policy strategies have evolved in response to changing realities, from the panics and depressions of the late 19th and early 20th centuries that led to the creation of the Federal Reserve to the Great Depression, from Bretton Woods and subsequent battles to contain inflation to the dominance of inflation targeting today (Williams 2014, 2015a).

But any responsible economist has to recognise that, past a point, it can lead to some combination of excessive foreign borrowing, inflation and even financial crisis.

This would likely lead to further pressure on labor resources, higher wages and, over time, somewhat higher inflation.

These are exactly the kinds of things that lead to inflation, but we aren't in the business of guessing.

True, it was only one quarter's information and that was not enough to change our numerical forecast of inflation, but it did lead us to conclude in our May Statement on Monetary Policy that there was no longer an upward risk to our inflation forecast.

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.

In fact, the sentiment is so heavily skewed towards deflation, low growth and low interest rates forever right now that an unexpected rise in inflation in the coming years could lead to great returns in commodities for a time.

In January, expensive commodities led to inflation, higher interest rates in developing markets, riots in the Arab world, and lower economic growth.

At that level, joblessness is nearing the threshold that economists and the Fed consider close to full employment; inflation foes worry that allowing the unemployment rate to fall significantly below 5 percent runs the risk of leading to an overheated economy.

Bond indexes have declined this year, as the growing economy has led the Fed to raise interest rates and investors have grown increasingly concerned about the potential for accelerating inflation.