Sentences with phrase «lower nominal»

At lower rates of nominal GDP growth, the security will have a finite value that declines rapidly with lower nominal GDP growth.

Also given the low growth, low inflation and low interest rate environment and the somewhat above average valuation numbers, one has to expect lower nominal returns from equities as compared to the past.

People in the bearish camp for property need to consider whether it could all be resolved with a much lower Australian dollar rather than lower nominal house prices.

In addition, for our analysis we will use Class A shares of the fund (with the maximum front - end sales charge of 5.25 % but a lower nominal expense ratio of 1.52 %), as opposed to the Class C shares cited by the article (with a nominal expense ratio of 2.28 %).

By 2016 QQE had succeeded in lowering real interest rates through both lower nominal rates and increased inflation expectations.

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.

Lower nominal — but higher effective — tax rates would eliminate bad incentives and bring in more corporate income tax revenue.

It is designed to lower the nominal price per share of a company's stock to make it more affordable for investors and increase liquidity.

Thank God someone in the US government understands that Japan is being hurt by falling NGDP, and that the easier money required to end the deflation will likely lead to a lower nominal exchange rate.

China's debt problems, in other words, can not be resolved administratively, by fixing the shadow banking system, by imposing discipline on borrowers, or indeed by eliminating financial repression (much of which, by the way, has already been squeezed out of the system by lower nominal GDP growth).

One, you've got lower nominal GDP growth, and long - term rates correlate with nominal GDP.

Option grants end up being worth more and more every year — simply because an option on a share with a high nominal value is more potentially lucrative than an option on a share with a low nominal value.

The OECD has recently lowered its nominal GDP forecast for Canada, which is now below the risk adjusted level used in the November 2012 Update.

Most forecasters are lowering their nominal GDP forecast for both 2012 and 2013, so this is a possibility.

Other factors driving rates lower — low nominal global growth, an older population, lower fixed income supply and the disinflationary pressure of technology — will likely remain in place.

Yet low nominal gross domestic product growth and aging populations argue for lower bond yields than in the past — and sustained demand for high quality bonds.

In this paper, the authors started with the following question: «Do persistently low nominal interest rates mean that governments can safely borrow more?»

Now, we're sympathetic to the idea that prospective real growth and inflation may be sufficiently lower in the future to place us into a low nominal growth world, which would also justify lower equilibrium interest rate levels.

Other factors driving rates lower — low nominal global growth, an older population, lower fixed income supply and the disinflationary pressure of technology — will likely remain in place.

Even with the prospect of a near - term easing of inflation and perhaps even some negative CPI inflation figures, the combination of strong real yields and principal safety makes these a good harbor for investors who want to sleep nights without accepting untenably low nominal yields (and the high associated durations - which I suspect many investors currently overlook).

Imagine lowering your nominal tax bracket by 5 — 10 % each and every year over a 20 year period!

Most, if not all, asset classes have high nominal prices, suggesting low nominal expected returns.

Low nominal and real interest rates on bonds mean a wider risk - premium spread on stocks and a cheaper relative valuation.

The ACR investment team has not lowered its nominal required return for the lower general inflation rate experienced in recent years.

Not exact matches

In many cases, acceleration should lower their costs, as nominal interest rates will likely be higher two years from now than they are today, and idle construction crews in Alberta are relatively abundant.

Nominal interest rates, both short and long term, have been much lower and more stable.

Lower dollar amounts provide nominal affiliate revenue and higher priced items do not sell as readily — which might prompt an influencer to decline entering into an agreement.

You see, according to these «economic theorists», when the unemployed and / or lower - income populace receive various types of funds from the government, they spend these funds, thus increasing nominal aggregate spending in the economy.

Sack and Elsasser attribute the low relative valuation of TIIS over this period to several factors: investor difficulty adjusting to a new asset class, divergent supply trends between TIIS and nominal Treasuries, and the lower liquidity of indexed debt.

Meanwhile, actual inflation is.8 % albeit due to oil price drops, nominal wages are stagnant, and workforce participation historically low, excluding demographic effects, masking recession level unemployment.

As a result, compared to the March 2012 Budget planning assumption, the level of nominal GDP is $ 9 billion lower in 2012 — this consists of a «risk adjustment factor» of $ 7 billion and the difference between the change in the private sector average forecast of $ 22 billion less the March 2012 Budget «risk adjustment factor» of $ 20 billion.

There is, of course, a great deal of skepticism about the 7 % real GDP growth rate that China has reported, but we should remember that in the first quarter, nominal GDP growth was much lower, 5.8 %.

In this new normal, recessions will tend to be longer and deeper, recoveries slower, and the risks of unacceptably low inflation and the ultimate loss of the nominal anchor will be higher (Reifschneider and Williams 2000).

And workers in advanced economies have experienced low growth in their nominal wages.

Low inflation and the impossibility of pushing nominal interest rates significantly below zero meant that there was little scope for lowering real interest rates and easing credit conditions by conventional means.

In addition, PBO's forecast for nominal gross domestic product (GDP)-- the broadest measure of the federal tax base - is considerably lower than the average of the private sector economists» forecasts released by the Minister of Finance on October 29, 2012.

New jobs need to continue to average 200,000 a month for another year to lure them back, and nominal wages must actually increase over and above 2 % to get back to 2012 and all the way until 2020 to approach levels of 2008, and again that's allowing for half of the lower participation for retiring boomers.

While stocks have a terminal value beyond a 10 - year period, the effects of interest rates and nominal growth on those projections largely cancel out because higher nominal GDP growth over a given 10 - year horizon is correlated with both higher interest rates and generally lower market valuations at the end of that period.

(And with nominal yields close to record lows, the same could be said for corporate bonds.)

As long as this government debt is rolled over continuously at non-repressed interest rates, which will be low as nominal GDP growth drops, China can rebalance the economy without a collapse in growth.

Because low - risk investments return roughly 20 % on average in a country with 20 % nominal GDP growth, financial repression means that the benefits of growth are unfairly distributed between savers (who get just the deposit rate, say 3 %), banks, who get the spread between the lending and the deposit rate (say 3.5 %) and the borrower, who gets everything else (13.5 % in this case, assuming he takes little risk — even more if he takes risk).

In a low - inflation environment, nominal interest rates are also low, and households are able to service much higher levels of debt than they could in the past.

There are so many reasons why this is wrong (to list just the most obvious, poor countries have much lower debt thresholds than rich countries, Japanese debt can not possibly be dismissed as not being a problem, and because it is almost impossible to find an economist who understands the relationship between nominal interest rates and implicit amortization, Japanese government debt has probably only been manageable to date because GDP growth close to zero has permitted interest rates close to zero) and yet inane comparisons between China's debt burden and Japan's debt burden are made all the time.

However, the slower - than - expected economic growth in 2013 and the accompanying lower level of nominal income in 2013 - 14 results in a «status quo» (before budget actions) deficit of $ 18.7 billion Subsequently, the status quo budgetary balance is actually lower that forecast in the November 2012 November Update.

Reported nominal GDP growth is around 5 %, but the growth in debt servicing capacity is probably lower.

In addition, the «risk adjustment factor» applied to nominal GDP will lower budgetary revenues by $ 3 billion per year.

There is a growing sense that the world is demand short — that the real interest rates necessary to equate investment and saving at full employment are very low and may be often unattainable given the bounds on nominal interest rate reductions.

Originally, the Liberals adjusted the private sector average forecasts (lower real and nominal GDP and increased interest rates).

Thereafter, the positive impact of the higher level of nominal GDP and the saving measures more than offset the fiscal cost of the policy initiatives, resulting in lower deficits than those forecast in the October 2010 Update to 2014 - 15, and a somewhat higher surplus in 2015 - 16.

Higher revenues and lower expenses resulting from the improvement in nominal GDP, coupled with the saving measures implemented in the Budget are just sufficient to offset the impact of the new policy initiatives.