Sentences with phrase «real value of debt»

It is impossible to say when the next financial crisis or bear market will hit global markets, but when it does, there will probably be a lot of questions that concern the real value of debt.

When the economy really does get bad, inflation will increase and the real value of the debt will be reduced to a fraction of its current level.

Reducing the real value of debts would help.

There is one thing that could change this, but it would lay bare the intellectual and moral bankruptcy of what policymakers have been trying to do, which is try to maintain the real value of debt claims while still trying to «stimulate» the economy.

History teaches, however, that a sustained regime of financial repression — an intentional policy of sustained negative real interest rates imposed for the purpose of inflating away the real value of debt — eventually produces high and volatile inflation (Reinhart and Rugoff, 2009).

Indexation maintains the real value of the debt in line with changes in the cost of living as measured by the consumer price index (CPI).

Most modern economists generally believe that deflation is bad for economic activity because as the value of your currency continues to rise, it typically reduces spending and increases the real value of debt.