Exact(8)
The monetary splurge has resulted in hot money spilling out across the world, which, in turn, is driving asset and consumer price inflation.
For example, a study of Bloomberg news stories showed that only 5% mentioned inflation, which was then unusually low, as a factor driving asset prices between 2001 and 2003.
The paradoxical truth may be that the less volatile business cycle (until recently) encouraged investors to take bigger risks with borrowed money, driving asset prices too high and ending in damaging busts.
It may — may — put a temporary end to the "doom loop" of funds fleeing Spanish banks, forcing the banks to sell assets, driving asset prices down and creating further doubts about solvency.
Cormac Russell of Nurture Development on his experiences of driving asset based community development in Ireland, and how it relates to the current political context in Ireland and the UK.
Antonio Fatas is annoyed at Gillian Tett, who talks to the I-see-bubbles crowd and assumes that they have The Truth — namely, that those crazy central banks are flooding the world with liquidity, driving asset prices to crazy levels, and it will all end in terrible grief.
Similar(51)
A broad risk is that a negative return on parking funds with the central bank might encourage banks to invest in riskier assets to secure a return, potentially driving new asset bubbles and more pain further down the line.
That risks driving down asset prices, forcing lots of banks to mark down equivalent assets and erode capital.
Investors turned off by low returns in the United States and elsewhere are pouring money into fast-growing economies such as Brazil, driving up asset prices and inflation.
Rapid deleveraging outside traditional banks also means that cleaning up banks' balance-sheets may not break the spiral that is driving down asset prices and stalling financial markets.
Funds switched out of Japan have shifted to other financial markets, with the chase for yield driving up asset prices and lowering interest rates.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com