#jacksonhole #jeromepowell
The possible era of #deflation in a fight against #inflation
Despite Zero or low Interest rates central banks have had a hard time reaching their inflation targets. But now it seems confirmed that it’s not low central bank policy rate which causes...
The possible era of #deflation in a fight against #inflation
Despite Zero or low Interest rates central banks have had a hard time reaching their inflation targets. But now it seems confirmed that it’s not low central bank policy rate which causes...
low inflation , but rather the low real interest rate
Ever since central banks embarked on their near zero interest rate policies and large scale asset purchase programme , Reality has proved them wrong , we have seen trends towards deflation rather than inflationary pressures
Ever since central banks embarked on their near zero interest rate policies and large scale asset purchase programme , Reality has proved them wrong , we have seen trends towards deflation rather than inflationary pressures
Post 2020, what we are seeing is loss of jobs and low employment levels , in case there is severe declines in demand side , and If employers are unwilling or unable to reduce wages they will have to reduce the number of employees,
which in turn will causes rising unemployment, declining output and pent-up deflation
The shocks that firms are experiencing strongly imply that revenue losses expected over the next six months will leave firms with little choice but to reset wages in the near to medium term.
The shocks that firms are experiencing strongly imply that revenue losses expected over the next six months will leave firms with little choice but to reset wages in the near to medium term.
It is hard to believe that as firms come to grips with true nature of the crisis — followed by declines in household consumption, business investment and overall economic activity , the domestic economy will not be able to escape deflation
Unlike the shocks from the financial system created by dot.com bust of the early 2000s and the great financial crisis that were transmitted to the real economy,
the coronavirus health crisis has led to a swift shutdown of the real economy,
the coronavirus health crisis has led to a swift shutdown of the real economy,
with the shock then transmitted to the financial markets.
The other factor to watch in such hard times is the rise in the prices which is caused due to reduction in the supply of goods and services in the economy is called supply side of inflation which is also known as ....
The other factor to watch in such hard times is the rise in the prices which is caused due to reduction in the supply of goods and services in the economy is called supply side of inflation which is also known as ....
Cost-Push Inflation and also another factor to watch is Cost pull inflation
We are in times which is most likely not be Demand Pull Inflation and central banks will still be stuck in this maze of low interest rates and rising risk asset prices.
@threadreaderapp
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We are in times which is most likely not be Demand Pull Inflation and central banks will still be stuck in this maze of low interest rates and rising risk asset prices.
@threadreaderapp
Unroll
