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(Inflation is likely to have the same impact; the less wealkthy own nominal assets, the rich real assets).Mr Piketty shows this in two ways.
In a world of low growth and high inflation, you outperformed by investing in so-called "real" assets directly linked to economic activity rather than in "nominal" assets.
Conversely, in a world of low growth and either actual or threatened deflation – the world Japan has occupied since the early 1990s – you were better off avoiding real assets and putting your savings in nominal assets.
The tsunami, by reducing risk premia and safe interest rates, has boosted the prices of nominal assets like bonds, and so boosted household spending on consumption out of wealth.
Late last year the Finance Ministry forced $5 billion (nominal assets) Hanwa Bank to close down, wiping out its shareholders.
And if Uncle Sam just prints money to rebuild Camden, prices will eventually rise and everyone with nominal assets, like cash or regular bonds, with see the purchasing power of these assets drop.
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Standing before an opulent gold screen, he reviewed the so-called Third Arrow of Abenomics, a tranche of strategies for restructuring Japan's economy by stimulating not just rises in nominal asset values but also long-term growth in real personal income.
Figure 7 illustrates the breakdown of the average annual nominal asset results by pillar for the adaptation scenarios R1 through R4 (Table 7).
Nominal asset values would drop to an index of $34 million for the 12-year period from 2000 to 2011 and to $74 million from the four years from 2008 to 2011.
These component-wise results are not necessarily compatible with the average annual nominal total assets position by strategy.
In this case, the Retreat option shows inferior average annual nominal total assets to the no adaptation strategy under high severity storms.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com