Consumer prices are rising uncomfortably fast, and people's expectations of future inflation, by some measures, have inched upwards.
But they do so based on their expectations of future trends in supply and demand, not on whims.
If central bankers push up expectations of future inflation, that now seems likely to push the stock market up.
Mr Krugman's crude Keynesianism underplays the link between firms' and households' behaviour and their expectations of future tax and spending policy.
On January 17th, the respected University of Michigan survey of consumer sentiment showed an unexpected drop because of gloomier expectations of future spending.
Its level reflects all sorts of things, including demand from investors for bonds, expectations of future inflation and a risk premium for holding longer-term assets.
There will be investor calls every quarter, the awareness that people are buying his stock based on expectations of future earnings, shares being traded daily.
If company insiders are able to misuse shareholders' funds at will, would-be investors will reduce their expectations of future cash flows and thus attach lower valuations to stocks.
On the other hand, if a central bank responds by cutting official interest rates too drastically, it may push up inflation, or cause expectations of future inflation to rise.
With the nominal exchange rate held down by intervention, this could only come about through a rise in prices, creating expectations of future inflation and so reducing real interest rates.
Having a valuable brand can increase expectations of future cash flows but only if the brand is utilized in innovative new ways or deployed on new products or in new markets.
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The impact could be larger, he accepts, if the new homes were directed to the areas where housing shortages are most acute and if the programme dampened expectations of future house-price increases.
Eventually, borrowers and lenders will wake up to the reality that their expectations of future growth in profits and returns were too rosy, and consumers will have to reduce their spending to bring debt back to sustainable levels.
It also can be said, however, that relative to current and recently lowered expectations of future wealth for the middle class, this is probably offering a higher percentage of redistribution than was the case a few years ago or for that matter during the pre-Thatcher British welfare state.
Because expectations of lower future taxes and debt, and therefore higher incomes, increase private spending.
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The snag is that a small revaluation is likely to increase expectations of another future appreciation, attracting yet more speculative capital and swelling foreign reserves further.
The modern Philips Curve model shows that pushing down unemployment results not merely in a corresponding one-time jump in inflation, but in spiraling, ever-increasing inflation, as consumers factor in the expectations of higher future prices.
Every way I looked at it the velocity of money was anything but stable and the volume of goods and services produced went up and down on the basis of what the expectations were of the future.
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We caught up with Hamm in February for this video interview, and you can also read my past coverage in Forbes Magazine about how Hamm got his start and a profile of him and his expectations for the future of the U.S. oil scene.
The Ifo index of future expectations rose more strongly, creating hopes of a return to stronger growth.
Long-term nominal interest rates are influenced by many things, including investors' expectations of inflation and future short-term rates, and a risk premium for holding long-term assets.
The hiring of Urban Meyer has had a stabilizing effect on the future expectations of Buckeye fans regarding where their program is headed.
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The latest figures of future expectations dropped to 96.4 from a three-year high of 97.5 in January, Ifo said, adding that the data was a "small warning signal".
The story is entirely different in the expectations game, the market in which buyers and sellers of stocks imagine the future and, on the basis of those expectations, determine the prices of stocks, bonds and other investments.
However, from the first quarter of 2008 through the current quarter, expectations about future credit access were statistically worse than views of access to borrowing over the prior 12 months.
Currently it seems that expectations regarding the future rate of the economic growth is what is currently driving Treasury rates more than anything else.
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However, nowhere is the tendency to extend trends in a straight line into the future without expectations of reversals more prevalent than in the world of investing.
Even if the overnight rate is close to zero, the Committee should be able to influence longer-term interest rates by informing the public's expectations about the future course of monetary policy.
However, the price at which they can sell that asset in the future depends entirely on the perceptions and expectations of other people , which may depend further on those of others in the future.
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