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.
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.
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.
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.
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.
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.
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And is there any expectation that the Justice Department might take action in the future?
As for moral hazard, the expectation of future bail-outs may prompt managers and unions in other industries to behave rashly.
If the Fed can generate the expectation that you are going to have inflation in the future, that may alter your behavioral patterns.
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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.
"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.
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