To keep inflation under control, the RBI sells securities in the money market, sucking excess liquidity out of the market. Demand falls when the amount of liquid cash available declines. The open market operation is the name given to this aspect of monetary policy. What efforts has the RBI taken to keep inflation under control? […]
How Does RBI Control Inflation? Read More »
Increased deficits do not lead to higher inflation through monetary accommodation or crowding out, according to the transaction cost hypothesis of separate wants for money and bonds. According to this idea, private monetization turns bonds into near-perfect money substitutes, making deficits immediately inflationary. Is debt expenditure associated with inflation? Second, when the yield on treasury
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According to hedge fund manager Anthony Scaramucci, today’s inflation concerns are only transient and do not pose a long-term threat to the economy. Is inflation temporary or permanent? Until recently, the Federal Reserve of the United States and the European Central Bank agreed that inflation is a serious problem “This is a “transitory” issue that
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The GDP growth rate is a measurement of how quickly the economy is expanding. The rate compares the country’s economic output in the most recent quarter to the prior quarter. GDP is a measure of economic output. What is the formula for calculating the GDP growth rate? The percentage change in real GDP per capita
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High inflation, which had been an economic afterthought for decades, resurfaced with startling speed last year. The consumer price index of the Labor Department was only 1.7 percent higher in February 2021 than it was a year earlier. From there, year-over-year price hikes rapidly increased: 2.6 percent in March, 4.2 percent in April, 4.9 percent
Is Inflation Going To Increase? Read More »
Real estate investment trusts (REITs) offer natural inflation protection. When prices rise, so do rentals and values in real estate. This helps REIT dividend growth and ensures a steady supply of income, especially during periods of high inflation. In all but two of the last twenty years, REIT dividends have exceeded inflation as assessed by
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Most Americans are too young to remember the inflationary boom of the 1970s and early 1980s, which is why the return of inflation has been so surprising. Many economists were also caught off guard. For a year after prices began to rise, they warned that this stage of the economic recovery would be the most
Does The President Control Inflation? Read More »
How can you figure out if a recession is already factored into the S&P 500? Or how much would stock prices fall if there was one? It’s based on earnings from the S&P 500. According to Colas, the S&P 500’s earnings have declined by an average of 30% in the five profit recessions since 1989.
How Much Does Stock Market Drop In Recession? Read More »
Rising oil prices and other consequences of Russia’s invasion of Ukraine, according to Goldman Sachs, will cut US GDP this year, and the probability of a recession in 2023 has increased to 20% to 30%. Is a recession in 2022 expected? To listen to the podcast, press play on the player above and follow along
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Inflation erodes the real value of a bond’s face value, which is especially problematic for loans with longer maturities. Bond prices are highly sensitive to changes in inflation and inflation projections as a result of these ties. Do bonds fare well in an inflationary environment? Maintaining cash in a CD or savings account is akin
Do Bond Prices Go Up With Inflation? Read More »
