By fostering the expectation of future inflation, that might get consumers to start spending again.
As for moral hazard, the expectation of future bail-outs may prompt managers and unions in other industries to behave rashly.
Investors would likely tolerate very low dividend-price ratios, in expectation of future growth of GDP, and so governments could probably refinance their debt at much better rates today.
Given that retirees over this decade and longer are confronting the conditions of a secular bear market, it is important to start with a reasonable expectation about future returns and market conditions, then to apply appropriate investment strategies and approaches.
FORBES: Managing Your Retirement Fund In A Secular Bear Market
If the Fed had a standing, credible commitment to keeping nominal incomes growing at 5.5 percent in 2008-2010, speculators would have effectively helped the Fed achieve its goal by buying up assets before they fell too far, in expectation that future Fed intervention would cause those asset values to rise again.
Instead, subtler forms of capture and "legal corruption" exist: an expectation of a future job for a regulator in a lobbying firm, or a campaign contribution with strings attached.
In the late 1990s consumers spent more and saved less, in the expectation that capital gains would finance their future pensions.
Redknapp, meanwhile, said City's financial resources ensured they would have a successful future, but also cranked up the level of expectation in the short-term.
But just as The Wintel duopoly is now in tatters, the expectation that Google and Facebook will split future revenues from the work that is going on at Mozilla, Samsung, Intel, Jolla, Baidu, LG and elsewhere is open to challenge.
In addition, other manufacturing plants will likely be built solely as a play on the expectation of relatively low energy costs into the future.
Deflation is bad for an economy as it tends to make consumers and businesses delay major purchases in the expectation that prices will fall further in the future.
The benefits of the shale gas explosion include the newfound abundant supply which will provide more than enough natural gas to meet U.S domestic consumption needs and provide an expectation for relatively low natural gas prices in the future.
FORBES: Surprise Side Effect Of Shale Gas Boom: A Plunge In U.S. Greenhouse Gas Emissions
And is there any expectation that the Justice Department might take action in the future?
If the Fed can generate the expectation that you are going to have inflation in the future, that may alter your behavioral patterns.
FORBES: Russ Certo On Capital Transfer, ZIRP's Downside, Concern in PRIME Market
So perhaps bond yields are being held down not by QE, but by the expectation that interest rates will be held near zero for the foreseeable future.
"There's a strong expectation that the economic impacts will increase going forward particularly because one might expect in the future that the ground could expand and as they do better we would hope there would be success in more competitions, " he said.
The expectation appears to be that, by so doing, Commerce will effectively enjoy primer inter pares status in future defense cooperation and similar negotiations.
应用推荐