Does increasing inflation boost economic growth? And do dropping prices hurt growth prospects? No and no. But to hear the Federal Reserve tell it, that’s the way the world works.
Investors are worried about deflation, a debilitating curse that has dogged Japan for years and savaged the U.S. during the Great Depression. But they shouldn’t be. Today’s falling prices are far more likely to set the stage for inflation ahead, likely gentle.
Now is a great time to pick up suddenly cheap oil-related assets. With the rapid decline in oil prices from a peak of around $110 a barrel to recent lows below $50, a scramble has ensued to pick up bargains in the oil patch.
The market is off to a shaky start this year, and wobbly overseas economies get much of the blame. Will the downturn continue, and the six-year-old bull market expire? Yes. Too-high valuations and falling investor risk appetite signal that.
The U.S. has imitated Europe for years, boosting government spending and racking up debt, creating a health-care system that doesn’t work and adding costly new social benefits. Now it’s Europe’s turn to imitate the U.S. in profligacy.
The root of the January stock sell-off, according to many commentators, was the tumbling cost of oil. What's wrong with oil prices falling? The anxiety is misplaced.
The dollar serves as an excellent prognosticator for the U.S. economy. Its remarkable strengthening lately serves as very positive signal. With the help of low interest rates and an improving economy, the dollar’s dominance should continue for a good while.
If you’re like most people who think about retirement, you probably imagine traveling in your golden years. Before you browse Acapulco websites and whip out the credit card to buy your ticket, make sure your finances can handle your trip.
The recent Christmas season provides occasion to reflect on Keynesian economics, given this: believing in that theory is a lot like believing in Santa Claus.
There’s a new word in the Federal Reserve lexicon to describe how long the Fed will take to start raising interest rates – “patient.” What’s the difference between this and its predecessor phrase describing the Fed’s willingness to wait? Hard to say. This one sounds like yet another rhetorical device to obscure its intentions and buy it flexibility.