Economics

Gold has long been thought to be a good inflation hedge. In reality, many people have looked to gold as a “alternative currency,” especially in countries where the national currency is depreciating. When their own currency fails, these countries often resort to gold or other strong currencies. Gold is a genuine, tangible asset that, for […]

The Federal Reserve has not set a formal inflation target, but policymakers usually consider that a rate of roughly 2% or somewhat less is acceptable. Participants in the Federal Open Market Committee (FOMC), which includes members of the Board of Governors and presidents of Federal Reserve Banks, make projections for how prices of goods and

Gold has long been thought to be a good inflation hedge. In reality, many people have looked to gold as a “alternative currency,” especially in countries where the national currency is depreciating. When their own currency fails, these countries often resort to gold or other strong currencies. Gold is a genuine, tangible asset that, for

Investments that maintain their value during inflation or rise in value over a set period of time are suitable for hedging against inflation. Investments such as gold and real estate have traditionally been considered good inflation hedges. What investments do well in the face of inflation? In the past, tangible assets such as real estate

A common policy adopted by many central banks is an inflation target of around 2%. The Fed (which calls it a “long run aim”), the ECB (which targets inflation “below, but close to 2 percent”), and the central banks of most other advanced economies are among these central banks. In a recent essay (Ball 2013),

Inflation in Southern California has surged again after reaching 7.1 percent in December. In January, the inflation rate was 7.5 percent, the highest since June 1982 and the sixth straight increase. Prior to this month, price increases were lower than the national average, but for the first time since December 2020, the January level matched

When inflation is high, value stocks perform better, and when inflation is low, growth stocks perform better. Do rising prices result from inflation? Inflation is defined as a broad increase in prices or a decrease in the value of money. It occurs when there is too much demand for too little goods or services, resulting

Pensions are a fantastic way to put money aside for the future. Your money is not only invested with the goal of increasing in value over time, but your employer and the government will also contribute to it. However, both while saving for retirement and when drawing down in retirement, pensions are not immune to