This theory suggests that an ideal monetary policy includes a small amount
of inflationary expectation.
Not exact matches
«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.
«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
That is, would
expectations of outsized demand growth —
of, say, 4 percent per year over the next four years in inflation - adjusted terms — generate undue
inflationary pressures that would require the Federal Reserve to respond by raising interest rates, essentially killing off any actual growth that those
expectations could generate?
Controlled
inflationary pressures also support our
expectation of further policy accommodation by Asian central banks.
That said, there's just no story right now, at least in the actual data (as opposed to
expectations),
of an overly tight job market leading to
inflationary wage gains.
All
of this has bumped up
inflationary expectations, if not core (sans oil, food) inflation itself.
But today's price divergence reminds us that Bitcoin's fixed number
of coins was designed and intended to be independent
of global government policies that create excess debt or excessive expansion that results increased
inflationary expectations.
If our friends at Deutsche Bank are right in forecasting the US unemployment rate to decline from the current 17 year low
of 4.1 per cent to 3.2 per cent by - late 2019, the US Federal Reserve are going to have a delicate balancing act as they lift the cash rate in trying to keep
inflationary expectations under control.
Business surveys report that current
inflationary pressures have firmed over the past quarter, and that
expectations of future price growth are also being adjusted upwards.
From a central banking point
of view, this is a bit disappointing and seems to suggest that
inflationary expectations have not come down as much as we would have liked.
Inflationary expectations, which remained stubbornly high through the 1970s and most
of the 1980s, have fallen sharply.
If there is an
expectation of inflation, there would be a rush to store up on assets like gold and silver, which are believed to be
of strong value and less submissive to
inflationary pressure.
Price
expectations, which are now seen as occupying a central role in the
inflationary process, have been cracked; given this, together with continued policy vigilance, there is no reason why the current underlying inflation rate
of 2 to 3 per cent can not be sustained.
The U.S. Treasuries gained Thursday, taking cues from the Federal Reserve's overnight decision, where the Fed Funds rate remained unchanged, with
expectations of a slightly higher
inflationary pressure.
Controlled
inflationary pressures also support our
expectation of further policy accommodation by Asian central banks.
The stability in oil, with the
expectation of prices going higher, has investors changing their view from deflation to an increasing
inflationary expectation.
Making things worse, commodities and inflation - protected securities, which are widely used by risk - parity managers as a hedge against inflation, also suffered heavy losses because
of receding
inflationary expectations.»