Eksempler på inflation

• However, if the rate of inflation is increased excessively, real returns will be driven down to the point where credit market frictions become binding.

• These actions may induce movements in nominal stock returns that cancel out or taper off those induced by innovations in real activity or inflation.

• After all, rational investors should adjust nominal returns to changes in inflation, in the dividend process and in the discount factor.

• Along these paths, as often happens with observed series, inflation is autocorrelated and deviations from target cannot be accounted for as simple stochastic innovations.

• Clearly, for values of around 1, this cannot be expected because past inflation has almost no predictive power.

• The initial inflation target was 3% until the end of 1992 and then it was reduced to 2% in 1993 until the end of 1995.

• It further gains by having marketbased measures of specific types of inflation.

• Note that all variables except for the interest and inflation rates are in logarithms and refer to deviations from some exogenous equilibrium (growth path).

• In the long run, stocks are considered a partial hedge for inflation risk.

• Figure 3 shows that the optimal volatility of inflation decreases when the elasticity of demand increases (the markup decreases).

• The positive and partly delayed responses of income and inflation are plausible.

• Lower inflation rates not only lead to clearer pricing signals and better investment decisions by economic agents, but also protect fixed income earners.

• An interesting question is whether an inflation threshold, for example, of 10 percent is significantly different from a threshold of 8 percent or 15 percent.

• But, as soon as the war ended, social unrest spread rapidly because of fierce inflation and other factors.

• For simplicity, the inflation rate, the money growth rate, and the output growth rate are assumed to be zero in the steady-state.