4
votes
1answer
209 views

What are good investments to use as hedges when the Federal Reserve draws down quantitative easing?

Basically I think it is quite obvious that quantitative easing (QE) will be pulled back eventually and countries will start to tighten their monetary policy. When that happens, what kind of assets ...
5
votes
1answer
256 views

Equity prices during currency devaluation — Mexico 1994 [closed]

If I own a company whose assets are 100 barrels of oil valued at $10,000 in some currency, and the currency's value suddenly drops by a factor of two, I would expect that my company is now suddenly ...
3
votes
2answers
444 views

As an investor what are side effects of Quantitative Easing in US and in EU?

If I understood well Quantitative Easing basically means a Central Bank prints out more money of its own currency. It seems simple to understand that it saves the country banks and the States by ...
8
votes
6answers
3k views

Why does money value normally decrease?

When you save money in the bank, you expect interest on your investment. But if you invest, on, say property, gold, or other durable goods, you don't expect your house or gold to multiply. Why? Is it ...
0
votes
1answer
83 views

References for inflationary vs. deflationary economy comparison? [closed]

Does anyone know of approachable books/papers/articles covering the topics of inflationary and deflationary economy comparison? That is: comparing how different the local/global economy might look if ...
4
votes
3answers
255 views

How do economists gather retail price data, such as for tracking inflation?

How do economists track the prices of things like milk, produce, furniture and other retail products? Do they have people with clipboards going out to stores and gathering data? Scrape web sites? ...
20
votes
5answers
1k views

Prices go up and salary doesn't: where goes delta?

I'm not sure that question is appropriate here, if it is not I will delete it. Question: I heard that in USA prices are rising, but salaries are not. This looks strange to me. It means that companies ...
34
votes
10answers
7k views

Is inflation a good or bad thing? Why do governments want some inflation?

Is inflation a good or bad thing? Why do governments want some inflation?
21
votes
10answers
12k views

Why do governments borrow money instead of printing it?

This question is raised in the movie Money as Debt (at time index 29:00). The answer that immediately pops to my head is "because printing money causes inflation". However, according to this movie, ...