The bronze sculptures, inspired by «Tulip Mania,» the first recorded futures market bubble, provide a physical analog for the process
of economic inflation and crash.
Though it's probably safe to say that most of us have an intrinsic understanding of the concept
of economic inflation — we all certainly realize that stuff is more expensive now than it was 50 or 100 years ago — seeing the hard numbers can still be surprising.
The major source
of economic inflation is today's fiat money system.
Not exact matches
Typically,
inflation of one per cent signals
economic weakness because there is too little demand to force prices higher.
«People who live at least another few decades will likely be affected by diminished funding
of Social Security, and also the
economic impacts that impact the broader economy, including rising interest rates and
inflation,» Hamrick said.
That would boost
economic growth,
inflation and debt: if the Joy
of Cooking contained a recipe for higher interest rates, that would be it.
Wages barely are keeping up with
inflation, and oil prices have settled at a level that is unlikely to generate the kind
of economic activity to which we had become accustomed before the 2014 - 15 crash.
Fifty years ago, Milton Friedman addressed the American
Economic Association in Washington DC on the topic
of monetary policy,
inflation, and wage rises.
Or, do the
economic positives we hear each day about low interest rates, low unemployment, low
inflation, a healthy banking sector, rising real - estate prices, technology improvements, protection
of resources, renewable energy and the rise
of India — among others — suggest that any downturn or crisis will merely be a short - term market correction, with the kind
of economic rebound we saw following the 2008 crisis?
Policy makers released new
economic forecasts last week that predict prices will rise 0.4 % in 2015, compared with the Fed's annual
inflation target
of 2 %.
The divergence
of core and total
inflation is important because the central bank's best means
of controlling prices is convincing
economic actors — households, executives, investors — that it has a handle on things.
As
inflation rises in tandem with
economic growth, growth stocks» future potential profits look less enticing compared with the steady profits
of value companies, many
of which are in industries where they can pass their costs through to customers.
the impact
of investment (including changes in interest rates),
economic (including
inflation, recent changes in tax law, rapid changes in commodity prices and fluctuations in foreign currency exchange rates) and underwriting market conditions;
«The benefits
of tax reform, global synchronized growth, [and] employment gains will extend the life
of our
economic expansion and eventually lead to
inflation and higher interest rates.
However, although the BCC believes the country will manage to avoid recession, it does anticipate slowing
economic momentum over the next two years given higher
inflation trends and a continued lack
of clarity about the process by which the U.K. leaves the EU.
A loss
of market access likely would hurt Canada's
economic potential, which would weaken its ability to absorb faster
economic growth without triggering
inflation.
The Globe and Mail recently speculated that the mandate will remain largely the same, but that it may be amended «to include a forceful assertion
of what he [Carney] calls «flexible
inflation targeting,»» or his right to respond to
economic shocks or dangerous buildups
of credit by taking longer than usual to bring
inflation to the central bank's 2 % target.»
In
economic news, the Federal Reserve's preferred measure
of inflation posted its slowest pace
of annual increase since November 2015.
Indeed, the evidence I reviewed does not support the view — expounded by the new Bank
of Japan management — that by buying more longer - dated securities (i.e., running printing presses a bit faster) will boost upward pressures in labor and product markets to bring stronger
economic growth and an
inflation rate
of 2 percent.
Given the recent
economic news, estimates
of 1.2 % for GDP growth, -0.2 % for GDP
inflation, and 0.55 % for the 3 - month T - Bill rate are more appropriate.
It includes market crashes, periods
of high
inflation, deflation,
economic collapse, a nuclear missile crisis, a world war, a cold war and countless seemingly intractable crises.
Analysts attribute the turbulence in global bond markets to emerging signs
of firmer
economic activity and expectations
of higher
inflation.
«There's no reason to think that the pace
of economic growth today is excessive and needs to be slowed because of incipient inflation,» Josh Bivens, research director at the Economic Policy Institute, said in calling on the Fed not
economic growth today is excessive and needs to be slowed because
of incipient
inflation,» Josh Bivens, research director at the
Economic Policy Institute, said in calling on the Fed not
Economic Policy Institute, said in calling on the Fed not to hike.
ISTANBUL, April 11 - Turkey's lira sank to record lows on Wednesday, battered by deepening investor concern about monetary policy and
inflation, a sell - off that President Tayyip Erdogan dismissed as an
economic attack by enemies
of the state.
Most analysts expect the first rate hike to come in September
of this year, but that the pace
of subsequent rate hikes will be slow, taking into account continued middling
economic growth and below - target
inflation.
The former Treasury Secretary and Obama Administration
economic advisor has come out forcefully on his blog and in interviews against the Fed's apparent plan to raise rates, arguing that the risks
of raising them too soon — like smothering the economy recovery — far outweigh the risks
of excessive
inflation that may be the result
of waiting too long.
ISTANBUL, April 11 - The Turkish lira sank to record lows on Wednesday, battered by investor concern about monetary policy and
inflation, a sell - off that President Tayyip Erdogan dismissed as an
economic attack by enemies
of the state.
Also unsurprisingly, Federal Reserve Bank
of Kansas City President Esther George, dissenter - in - chief at the bank, voted against the motion to stay the course, citing «
economic and financial imbalances,» as well as, further down the road, «an increase in long - term
inflation expectations» as reasons for concern.
Worries about the Federal Reserve hiking interest rates more aggressively to combat rising
inflation should not overshadow the benefits
of stronger
economic growth, the billionaire co-founder
of Blackstone Group told CNBC on Thursday.
Chris Rupkey, MUFG Union Bank Managing Director and Chief Financial Economist, discusses rising interest rates, rate
of inflation, and solid
economic outlook
Economic growth, rising
inflation expectations and a Fed policy shift will challenge one
of today's most successful investing strategies: credit risk.
«
Economic numbers» could encompass a range
of issues, from
inflation and interest rates to the number
of jobs created during his tenure.
At its core, the market sell - off, which shoved the Dow Jones industrial average nearly 1,600 points lower Monday in the biggest intraday point drop in history, showed traders adjusting to signs
of firmer
economic growth and, potentially, a resurgence
of long - dormant
inflation.
When other countries saw the promise
of macroprudential policy, they set up stand - alone entities to apply it, leaving monetary authorities free to concentrate on
economic growth and
inflation.
Wild swings in the markets have caught many veteran
economic forecasters off - guard, but a group
of Canadian CEOs weighed in recently with their views on exchange rates and
inflation in a poll conducted by COMPAS Inc..
If oil prices do not escalate, the government's budget outlook will deteriorate in the billions
of dollars, through a combination
of slow
economic growth and lower than anticipated
inflation.
Inflation has been running below target, recent
economic growth has been sluggish, and the housing sector has been tapped out as a source
of growth.
The current market is reminiscent
of the 1990s bull, he added, as stocks are benefiting from an extended
economic expansion and low
inflation.
Low volatility shows that investors believe that long - term global
economic trends
of modest growth and tepid
inflation will also define shorter - term cycles.
The Fed's targets 2 percent
inflation growth as a sign
of healthy and sustainable
economic growth, but has failed to reach that level despite a decade
of historically accommodative policy.
«This makes the Fed look nuts» for continuing to raise interest rates this year, Blanchflower said, particularly since officials have chronically undershot their 2 %
inflation target for the bulk
of the
economic recovery.
The OECD noted that «short - term
inflation expectations appear to be inching upwards,» and said that the Bank
of Canada, which has kept interest rates to promote
economic growth, «should soon resume tightening at a moderate pace.»
«The rise in long - term inflationary expectations... suggests that part
of the recent rise in headline
inflation may now be expected to persist longer than previously thought,» the Paris - based group observed in the Global
Economic Outlook released today.
Creeping
inflation has also attracted the attention
of the Organization for
Economic Cooperation and Development, which is calling on many
of the world's central banks to raise interest rates.
This week, Germany's business pages have been full
of little warnings about the Return
of Inflation, the biggest bogeyman in the Teutonic
economic lexicon, all because the annual consumer price index rose to its highest level in over three years in December, a shocking 1.7 %.
While the lack
of independent
economic cycles argues against too strong
of a conclusion, stock - bond correlations have tended to co-move with
inflation and monetary conditions.
In addition, the Fed's preferred gauge
of price pressures has been mired below 2 percent; during an
economic expansion,
inflation usually begins to tick higher.
After a rough start to the year,
economic data have firmed lately, with strength in housing, spending and retail sales pushing some Fed officials to believe that their
inflation target
of 2 percent is within reach.
She has long argued that an extraordinary amount
of monetary stimulus would not lead to runaway
inflation because
economic activity was so depressed.
Kelly said that with a tight labor market, improving
inflation, and slow but improving
economic growth, the Trump plan had the danger
of kicking the economy to an unsustainable level.