Regarding the threat of inflation and financial bubbles

What does this graph and numbers mean? It means that the comparability of growth rates between the real economy and the balance sheets of the central banks are not being observed. However, if the balances increase and money is being printed why isn’t there runaway inflation? First, it takes 9 to 18 months from the infusion of money into the system until inflation occurs. Second, inflation only takes place when money is infused into the real economy. If the money stays in the financial markets there can be no inflation, but the bubble of financial assets…

 

 

 

 

 

 

 

 

Disclaimer: This article contains the opinions of the author. The opinion of the author is subject to change without notice. All materials presented are compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This article is distributed for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, product, or service. Performance data shown represents past performance. Past performance is no guarantee of future results. No part of this article may be copied, distributed, transmitted or published without the prior written consent of the author.

 

 

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