Domestic inflationary pressures, associated with higher wages and incomes, will
lead to higher inflation for non-tradable goods and services but, at the same time, the gradual pass through of the initial exchange rate appreciation will lead to lower inflation for tradable goods and services (whose prices in foreign currency terms depend to a significant extent on global considerations).
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.
Not exact matches
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?
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.
Workers expect their earnings
to keep pace with
inflation, and a more substantial rate will likely
lead to demands
for ever
higher wages.
Proposals
for fiscal stimulus via tax cuts, government spending and regulatory reform have
led to expectations of stronger economic growth,
higher inflation and
higher interest rates.
As an aside, the further the dollar weakens the more expensive it will be
for the US
to purchase foreign goods, which will
lead to higher inflation.
If this selloff is precipitated by
higher interest rates, weaker dollar and
higher inflation and the Fed decided
to start cutting rates that would be a further mess
for the U.S dollar and potentially even more inflationary and could
lead to even
higher long - term interest rates.
During periods of
inflation, workers often demand raises which
leads to higher costs
for business which, in a self - reinforcing cycle, results in even
higher rates of
inflation.
We believe that a
high degree of economic confidence
for the euro zone will
lead the ECB
to hike rates next year, even though
inflation will likely remain far from the bank's price - stability objective.
As we mentioned above,
higher inflation leads investors
to consider other storehouses of value
for protection.
When Republicans,
for instance, damn Democratic leaders
for high prices and
inflation, some individuals may be
led to blame the Democratic Party and vote Republican despite misgivings about Republican preferences
for the wealthy at the expense of the poor.
High inflation offset gains,
leading to a 5.16 % decline
for the Brazilian book market in 2014, which totaled just US$ 2.03 billion.
During periods of
inflation, workers often demand raises which
leads to higher costs
for business which, in a self - reinforcing cycle, results in even
higher rates of
inflation.
For example,
higher inflation leads to higher interest rates, while lower
inflation leads to lower interest rates.
For example, the double - digit
inflation of the 1970's was caused by banks keeping interest rates low in an attempt
to stimulate a weak economy, at a time when imported
inflation from the oil shock was
high (
leading to stagflation).
For example, an increase in the price of oil may contribute to higher input costs for a company and could lead to higher inflati
For example, an increase in the price of oil may contribute
to higher input costs
for a company and could lead to higher inflati
for a company and could
lead to higher inflation.
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.
When global interest rates and
inflation levels are
high there may be an argument
for doing something like that as that could reduce inflationary expectations and
lead to lower interest rates.
At its worst, the imposition of tariffs on U.S. imports could
lead to tariffs on U.S. exports,
higher import prices, and greater pressure on
inflation as well as smaller markets
for U.S. exporters.
The improving economy, however, will likely
lead to higher inflation and interest rates, which will raise the cost of borrowing
for consumers and investors.