The much lower nominal interest rate structure prevailing in Australia in the 1990s reflects, in part,
the large decline in inflation since the late 1980s.
Not exact matches
Annual
inflation readings
in March of last year were held down by
large declines in the price of cell phone service plans.
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.
China's consumer
inflation remained weak
in December, while price
declines at the factory gate level continued to deepen, suggesting weakness
in the world's second -
largest economy but giving policy makers more room to take easing measures.
But there remained, before the central bank meeting on Thursday, many questions about how
large the program would be and whether it would be powerful enough to reverse a two - year
decline in inflation.
Credit concerns typically create a spike
in demand for default - free assets such as U.S. government liabilities, so even though there is a much
larger float than is likely to be sustained over time without
inflation as the ultimate outcome, credit concerns tend to support the value of these liabilities and hence mutes immediate
inflation pressures (essentially, monetary velocity
declines as these liabilities are sought as a default - free store of value).
Figures already released for December showed a renewed drop
in inflation in two of the world's
largest economies, with the euro zone recording a
decline to 0.8 % from 0.9 %, and China recording a fall to 2.5 % from 3.0 %.
So, the Fed is not responsible for the
large decline in the US monetary
inflation rate and the resultant tightening of monetary conditions that has occurred to date.
Producer price
inflation remains modest with
large declines in the prices of imported items offsetting the growth of domestic prices; overall final stage prices rose by 0.1 per cent
in the December quarter, to be 1.0 per cent higher over the year (Table 15; Graph 73).
While the N.C. Association of Educators and teachers have demanded increases to per pupil spending, funding is only a symptom of a
larger problem.Much of the tensions between the state legislature and teachers — arising from a
decline in inflation - adjusted per - pupil spending and a 10 percent
decline in inflation - adjusted salaries — could have been circumvented with stronger rights for public - sector employees.