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Just like the Ancient Mariner, we are awash in liquidity but without a drop of inflation to drink.
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Historically, the dropping of inflation has proved to be a boon for certain markets.
France's industrial output rose by a meagre 0.5% in the year to March.In this section Overview Output, demand and jobs Prices and wages Top 20 ideal employers, 2003 Money and interest rates The Economist commodity price index Stockmarkets Trade, exchange rates and budgets Exchange-rate forecasts ReprintsTwo euro-area economies saw a drop in their rates of inflation.
Heavy discounting by retailers and a sharp fall in world commodity prices has led to a faster-than-expected drop in the rate of inflation, the CBI's quarterly forecast said.
Venezuela's annual rate of inflation dropped to 51.0% in May, the lowest level since April 1994.In this section THE SIZE OF ECONOMIES ECONOMY FINANCIAL MARKETS Reprints.
While Greece implodes, Germany is enjoying the lowest levels of unemployment since reunification after the fall of the Berlin Wall, and borrowing costs that have dropped below the rate of inflation as investors seek safe haven from the turmoil.
As chairman of the Council of Economic Advisers (1974 77) during Gerald Ford's presidency, Greenspan promoted policies that caused the rate of inflation to drop from 11 to 6.5 percent.
In the speech, he made a passing reference to a phrase used by Milton Friedman, about using a "helicopter drop" of money to fight inflation, which eventually earned him the nickname "Helicopter Ben" from conservatives scandalized by his aggressive action after the financial crisis began.
Other measures of inflation also dropped today.
Perhaps more importantly, market-based measures of inflation expectations dropped rapidly through July and August.
Although the consumer prices index (CPI) – the official measure of inflation - dropped to 2.5% in May from 3.1% in March, inflation remains above the Treasury-set target of 2%.
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