E.g. an Indian facing the high
inflation of a growing economy, may hold the stock of a US REIT when US inflation is near zero.
Not exact matches
After the
economy started
growing for a while — and considered out
of recession — the Federal Reserve raised interest rates to stop
inflation.
In a
growing economy, the Bank
of Canada will have to start raising rates to temper
inflation, in effect shutting off the credit spigot that has allowed so many Canadians to buy homes.
If the bulls are right, EPS would
grow 8.5 points faster than the
economy (assuming 2.5 % real annual GDP growth plus 2 %
inflation) for the next ten years, hitting over 16 %
of national income by 2028.
China «s consumer price
inflation slowed to its weakest pace in almost a year in August, pulled down by abating food costs, although an encouraging moderation in producer price deflation added to
growing evidence
of a steadying
economy.
Japan also received an endorsement with a
growing economy, wage growth and
inflation after years
of stagnant growth.
The Bank
of Canada reckons the
economy is likely to
grow at an annual rate
of 2 % without sparking
inflation.
Another central bank struggling with too - low
inflation is the Reserve Bank
of New Zealand, which held rates steady on Thursday but renewed a pledge to cut again even as much
of the domestic
economy grows briskly.
Speculation on further easing has been
growing since Draghi's last press conference in October, when he expressed concern about fresh risks to the
economy from the slowdown in China and other emerging markets, and about the stubborn refusal
of inflation to come back to its targeted level
of just under 2 %.
They have a history
of returning surplus cash in the form
of intelligently - executed share repurchase plans and / or a dividend that
grows at a rate comfortably in excess
of the broader rate
of inflation in the
economy
At the onset
of the Asian crisis, the Australian
economy was
growing at around trend rates, with domestic demand beginning to accelerate, and underlying
inflation at 1.6 per cent.
These two factors — a
growing economy and the printing
of more money — can cause
inflation.
As the process
of adjusting to lower
inflation proceeds, the
economy should be able to
grow faster in a sustainable way.
Ahead
of that this morning we have CPI
inflation data, fears
of low
inflation coupled with a contagion from slow
growing and even contracting foreign
economies is exactly why we believe the FOMC will not remove the «considerable time» phrase in its statement when referring to raising rates.
Fifth,
inflation mismeasurement may be
growing as the share in the
economy of items such as heathcare, where quality is hard to adjust for,
grows.
Three popular explanations are offered to justify the high level
of share prices: that profits will
grow faster; that the
economy and hence equities have become less risky; and that lower, more stable
inflation will reduce real interest rates.
In a 6/25/15 address to the London Bullion Market Association (LBMA) forum (brought to our attention by Luke Gromen in his newsletter, The Forest for the Trees), Dr.Yao Yudong
of the People's Bank
of China stated, «Main reserve currency issuers may either fail to adequately meet the demand
of a
growing global
economy for liquidity as they try to ease
inflation pressures at home, or create excess liquidity in the global markets by overly stimulating domestic demand.»
Two years on, the
economy is
growing at just shy
of 2 1/2 per cent and underlying
inflation is around 2 1/4 — 2 1/2 per cent, consistent with the target.
The release was a bit
of a Goldilocks report for the market, as it continued the narrative that the
economy is
growing at a healthy pace, but the weakest performance in consumer spending in five years punched a hole in the
inflation bubble that hurt the market early in the week.
Back then the
economy was already
growing rapidly and eventually the added stimulus by Washington triggered a major bout
of inflation.
The capacity
of the
economy to
grow faster while maintaining low
inflation will depend importantly on the future behaviour
of wages.
After 11 months
of QE, the
economy is
growing more consistently, and I believe that once the effect
of the oil price decline drops out
of inflation figures next year, the annual rate
of inflation could move slightly above 1 %.
Mr. Speaker, based on our policy objective
of ensuring macroeconomic stability, and
growing the
economy for job creation, whilst protecting social spending, the following macroeconomic targets are set for the 2018 fiscal year: • Overall GDP growth rate
of 6.8 percent; • Non-oil GDP growth rate
of 5.4 percent; • End period
inflation rate
of 8.9 percent; • Average
inflation rate
of 9.8 percent; • Fiscal deficit
of 4.5 % percent GDP; • Primary balance (surplus)
of 1.6 percent
of GDP; and • Gross Foreign Assets to cover at least 3.5 months
of imports
of goods and services
The cons
of this however is that this can be harmful to the
economy as a whole in the longer term as every printed dollar requires the
economy to continue
growing relative to the rate
of printing money, otherwise
inflation occurs.
This has resulted in the
growing stability
of the macro-
economy and the cedi, reduction in
inflation, and an abolition
of nuisance taxes whose aim is to shift the focus
of the
economy from taxation to production.
The President noted that «our actions have resulted in the
growing stability
of the macro-
economy and the cedi, reduction in
inflation, and an abolition
of nuisance taxes whose aim is to shift the focus
of the
economy from taxation to production.»
The news that 49,000 fewer people are out
of work was overshadowed by a bleak forecast from the Bank
of England, which predicted in its August
inflation report that the UK
economy would only
grow by around 2.5 % in 2011.
But Andrew Lilico
of Europe Economics says that
inflation has tended to jump up to five per cent whenever the
economy has been
growing in the last four years.
says a lot
of people are dipping into savings now... Let's hope that by April next year, the
economy starts improving, that the
economy is
growing, that wages start rising, that
inflation starts coming down, because if those things are happening then some
of these pressures are more bearable.
The size
of national and global
economies was
growing faster than the supply
of gold, and hence it was becoming impossible to have enough gold to back all the currencies (
inflation concerns aside).
Central banks set policy rates to control economic growth, and
economies require low levels
of inflation to
grow.
When the
economy has been
growing for some time, the fear
of inflation rises and the markets focus on signs
of increasing wages and prices.
On Friday the markets got a shot in the arm, pushing the NASDAQ to a record close after the Bureau
of Labor Statistics announced the U.S.
economy had added 313,000 new jobs for February (the largest gain since mid-2016)-- easily beating analyst expectations
of 222,000, while hourly wages
grew only 0.1 % — easing fears
of growing inflation.
The Russian
economy's in excellent shape:
Inflation's at a post-Soviet era low
of 3.7 %, unemployment's at 6.6 %, GDP is forecast to
grow 3.5 %, and the rouble's estimated to be 20 - 30 % under - valued on a PPP basis.
Even today, after months
of a
growing economy,
inflation remains below the Fed's target which makes it difficult to justify further rate increases.
As discussed last month, this is a bit
of a too much
of a good thing crash all around — tax cuts into a strong
economy sending
inflation and interest rates high enough to lead the Federal Reserve to (potentially) over react and raise rates too high, causing a recession and
growing debt issues as the government refinances debt at higher rates, all while a tax cut reduces federal revenues.
In the four years before President Macri's arrival, the Argentine
economy grew at a paltry 1.6 % rate per year — meaning that, in per capita terms, it didn't
grow at all... Consumer
inflation, on the other hand, averaged almost 30 % per year... At the end
of May, the government announced a plan to increase public pensions and devolve tax revenues to the provinces that, if implemented (which is almost certain), will cost the national government a significant amount
of money and make meeting primary deficit targets... all but impossible to achieve.
Nowadays, the
economy of a country considers as a stable when its rate
of inflation doesn «t start to
grow to the side
of increasing that level.
Truth is, the real
economy grows at a 1 - 3 % / year rate in
inflation adjusted terms, with a lot
of noise, absent rampant socialism, or war on our home soil.
The global
economy is
growing,
inflation is rising globally, the dollar is rising, and the 30 - year Treasury has not moved all that much relative to all
of that.
Have you accounted for
inflation and raise
of prices in a
growing economy like India?
Don't you think we as bloggers have similar social responsibility to highlight the pros & cons
of a low - yielding product which may not be suitable for many
of us after considering the high
inflation (in a
growing economy like ours)??
That makes continued productivity gains the big question mark, because it's been the vaunted productivity gains
of the new high - tech
economy that, in the view
of many analysts, have inoculated the fast -
growing economy against
inflation.
Much
of it depends on the market you're in, but let's assume the local
economy is
growing equal to the population, and wage rates are equal
inflation.