But an academic study by Thomas Herndon, Michael Ash and Robert Pollin of the University of Massachusetts debunked it — turns out the profs had it backward, and that
slower growth leads to more debt.
Not exact matches
In 2010, Shilling penned The Age of Deleveraging: Investment Strategies for a Decade of
Slow Growth and Deflation, in which he predicted savings levels would increase and debt levels would fall in the
lead - up to 2020.
If the U.S. struggles, global
growth will falter, the pace of innovation will
slow, and the U.S. will find it hard to
lead efforts to open the global trading and investment system,» states the report.
In February, it gave a surprise forecast for
slower growth that
led to a big sell - off, wiping out nearly $ 11 billion in market value.
«The first quarter's slowdown was
led by consumers, whose incomes are under pressure from
slowing employment and wage
growth as well as rising inflation.
«This trend could be due to several factors (or a combination of them): more startups being targeted for acquihires as their
growth slows, capital availability
leading to more ready cash on - hand, and a general consolidation of certain industries (e.g., food delivery companies acquiring each other),» CB Insights wrote in a blog post.
«While much attention has focused on the role of China in
slowing world trade
growth, the trajectory of world trade
growth from here depends more on the «old world» markets of the U.S. and Europe than standard trade data would suggest,» said Adam Slater,
lead economist at Oxford Economics, in a report out last week.
«We are in what we believe are the final stages of the recovery, which naturally
leads to
slower growth rates,» Schuster said.
Leading the way was Guangzhou, China, where values shot up 27.4 %, even as price
growth in Shanghai and Beijing
slowed.
«
Leading indicators suggest that domestic demand will continue to perform strongly in the second half of the year, but we think the quarter - on - quarter run - rate in headline GDP (gross domestic product)
growth will
slow to 0.4 percent - to - 0.5 percent quarter - on - quarter,» Claus Vistesen, chief euro zone economist at Pantheon Macroeconomics, said in an email.
At the point the
growth began to
slow, the multiple would contract, meaning that even if its earnings do grow 600 % in the next few years, if it becomes subject to the law of big numbers - that ever increasing amounts eventually forge their own anchor - the result would be a market capitalization substantially similar to today,
leading to no increase in the stock price over a long period of time.
Canadian demographer David Foot, who made a name for himself following the entrails of the baby boom and wrote the book Boom, Bust and Echo, has been warning for years that an aging workforce inevitably
leads to
slower economic
growth.
After the financial crisis, the US experienced a period of low rates,
slow growth and President Obama -
led regulation.
Finally, in a nominal GDP targeting regime, a decline in r - star caused by
slower trend
growth automatically
leads to a higher rate of trend inflation, providing a larger buffer to respond to economic downturns.
As CNBC anchor Becky Quick pointed out this morning during their segment in which I joined, we may be entering that phase of the cycle where good news on Main St. is bad news on Wall St.. That is, accelerating wage
growth may
lead the Federal Reserve to tighten faster,
slowing overall
growth more than currently expected.
«In recent quarters, weaker foreign demand has dampened business investment, and low oil prices have weighed on energy - related investment, both of which have typically
led to
slower PDFP
growth.
At the same time, Australia's commodity -
led growth has
slowed.
It's proven that when you fast you increase
growth hormone, which
leads to increased fat loss and also
slows down the aging process.
It's true that demographic forces are
leading to
slower growth in the labour force, which reduces the neutral interest rate in the economy and increases the chances that monetary policy will be constrained by the lower bound on interest rates.
Aging societies, weaker business capital investment and
slowing productivity
growth have
led to a persistent decline in economic
growth.
«Like China, North America has largely been unaffected by depreciation and inflation due to the strong dollar,
leading to steady, if
slow, shipment
growth, though inventory management remains a concern.»
This is the headline for this morning's release of the Chicago Fed's National Activity Index, and here is the opening paragraph from the report: «
Led by
slower growth in production - and employment - related indicators, the Chicago Fed National Activity Index (CFNAI) declined to +0.10 in March from +0.98 in February.»
After a series of tit - for - tat tariffs between the economic giants, there has been widespread concern that these moves could
lead to a trade war which would
slow down Chinese
growth and trigger a global recession.
The active platform development was
slowed by the ETH rate
growth, which
led to the Ethereum network commission for processing one bet raise in price from several cents to several dollars.
Many investors tend to project high
growth rates far into the future without fully considering forces that eventually will
lead to
slower growth» Ed Wachenheim
All of which means a sustained trade war could
lead to higher unemployment and
slower economic
growth in the US.
It remains our view that China's economy is in the midst of a transition to a new, more domestically and market - focused economic model that is
leading to
slower but more sustainable
growth than in the past.
Slower growth and doubts about accounting are
leading international investors to rethink China.
Africa is becoming a multi-speed continent with divergence in
growth due to a commodity
slow - down affecting some economies, says
leading international agent, Knight Frank.
Market volatility, in the face of worries over
slower global economic
growth, has
led investors to become more critical of new offerings.
High inflation rates,
slow economic
growth, loss of global value of currency, and social and political uncertainty
leads to increment in prices of precious metals.
This process
leads to sharply rising corporate profits initially, and such a profit rise creates a stock market bubble, which eventually crashes because one day debt
growth slows down.
By CBO's estimate, making Social Security solvent would substantially
slow debt
growth,
leading it to rise to 111 percent of GDP after three decades rather than 150 percent.
This
leads to value investors often ignoring them believing they are too expense, while
growth investors will often only be excited during the early stages of rapid
growth but lose interest when the
growth rate
slows to solid, but not exciting, levels.
This may
lead to a
slowing of economic
growth.
This condition will
slow economic
growth, and the resulting poor economic conditions will
lead to lower inflation and thereby lower long - term interest rates.
«(I) f Sonoma County does not create 8,143 new (housing) units by 2020... there will likely be drag in the overall economy
leading to
slower employment
growth,» says a new county plan released Thursday for recovery from the fires.
As
growth has
slowed, China must transform its export -
led economy to one fueled by domestic consumption, become a leader in technological innovation, and power these changes with renewable energy.
Companies are cutting capital expenditure and focusing on core assets with fast returns, which will
lead to
slower production
growth over the medium term.
These developments, accompanied by a weak export performance,
led to a marked
slowing in output
growth.
Perhaps investors are still wary after the financial crisis or are worried that the
slower growth world we live in today will
lead to poor returns.
This behavior has
slowed the pace of overall economic
growth, but it has also prevented the excesses that have
led to corrections in the past.
While the China bears continue to growl, the latest report from the World Bank points out the Chinese are shifting to «
slower but more sustainable consumption -
led growth».
Here are a couple good examples of the studies that show that early introduction of solid foods (before 6 - 9 months)
slows growth: http://www.ncbi.nlm.nih.gov/pubmed/?term=The+effect+of+beikost+on+the+diet+of+breast-fed+infants http://www.ncbi.nlm.nih.gov/pubmed/9347292 Quote: «Those results suggest that for breast - fed infants, early introduction of [other foods] reduces milk consumption and may
lead to significantly lower weight gain than continuation of the exclusive breast - milk diet.»
The onset of a long period in opposition for social democratic standard - bearers such as Labour in Britain and the SPD in Germany, coupled with continuing
slow growth, high unemployment and falling unionisation,
led the parties of the Socialist International into a comprehensive accommodation with neo-liberalism — albeit one wrapped in soothing social market rhetoric and homeopathic concessions at the margins.
«Years of decreasing, stagnant or
slow economic
growth have
led local governments to cut vital services and tap their rainy day funds to balance budgets, a practice that is not sustainable in the long term,» the comptroller said.
Our
leading indicators are already pointing towards another recession — house prices are falling,
growth is
slowing, lending is drying - up and consumer confidence is shrinking.
PTEN is known as a tumour suppressor gene meaning that it typically
slows the
growth of cells and its loss can
lead to cancer.
The team
led by Andreas Plückthun, Director of the Department of Biochemistry at the University of Zurich, involving postdoc Rastik Tamaskovic and PhD student Martin Schwill, has now found out why these antibodies merely
slow tumor
growth rather than killing off the cancer cells.
A good model system for research is provided by Oesophagostomum dentatum, a roundworm which infects the large intestines of pigs,
slowing the animals»
growth and
leading to significant economic losses.