There was also a school of thought that believed a period of deflation, where
nominal prices fall, was a risk.
From 1925 to 1933,
nominal prices fell 30 percent, according to the data compiled by Robert Shiller, who created the index with Karl Case, a fellow economist.
Not exact matches
Things improved after that, as the mortgage cost of purchasing of a residential property gradually
fell all the way to 297 weeks in 2001, mainly as a result of stagnating
nominal housing
prices during that time period.
It is possible that measured GDP growth is somewhat overstated due to difficulties in estimating the GDP deflator, which is
falling considerably more quickly than other
price measures;
nominal GDP has grown by a much more modest 0.8 per cent over the year, although this is still an improvement on recent history.
The June quarter ABS capital expenditure (Capex) survey points to solid growth of machinery and equipment investment in real terms in 2003/04, although in
nominal terms, investment is expected to
fall by 3 per cent (assuming a five - year average realisation ratio), reflecting lower
prices for investment goods.
Property tax revenues
fell by 1.0 percent in
nominal terms, likely driven primarily by
falling housing
prices.
Jaguar is working on a new engine family, Ingenium, which has already yielded a 2.0 - liter turbodiesel, on sale this
fall as the F - Pace's
nominal price - leader model, the 20d.
For a visitor from a foreign country with stable
prices the only hints that things were different would be seemingly high
nominal interest rates and a
falling currency.
After all, the Gordon Growth Model tells us that equity
prices should
fall as the
nominal discount rate increases, ceteris paribus.
Following their 1929 highs, stock
prices fell 89 percent in
nominal terms, 80 percent in real terms.
So even if there is increased inflation,
Nominal Prices remain the same, but REAL
Prices fall.