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What price-earnings ratio to put on the market is more of a function of the going inflation rate and the confidence level of the recession's depth and duration.
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As theories go, inflation was a beauty.
So again, up goes inflation.
March 2006 "Where Did the Productivity Growth Go? Inflation Dynamics and the Distribution of Income", by Ian Dew-Becker Dew-Becker and Robert Gordon
A period of rapid inflation right at the beginning would impose such uniformity by stretching any initial irregularities so thin that they would become invisible.As kludges go, inflation has been successful.
If governments print more money to pay off their debts, the logic goes, inflation will destroy the value of the dollar, the euro and other paper currencies — thus enhancing the value of gold.
The go-go years were gone, inflation was coming and CEOs wanted cash, not stock.
The go-go years were gone, inflation was coming and CEOs.
But if he does cut rates again, up will go inflation.
In effect, the argument goes, inflation is a relic of that unenlightened time before the Fed chairmanship of Alan Greenspan.
As inflation went up, inflation-indexed bonds would have become more valuable as their par values and interest rates adjusted upward.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com