By the metric of inflation-adjusted earnings, stocks got way out of line a few years ago.
Understated inflation used in estimating inflation-adjusted growth has created the illusion of recovery in reported GDP.
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From 2007 to 2009, inflation-adjusted federal spending went up by a staggering number, 24%.
Capital gains would also be indexed for inflation--no more paying taxes on phony gains.
Inflation-linked bonds also offer protection but their current real yields are very low or even negative.
Such talk may burnish the Fed's inflation-fighting credentials but is unlikely to mean much.
In practice, the central bank is free to pursue an inflation-rate goal set by the government.
Free trade lets America export its inflation--precisely to countries that, like Japan, so desperately want it.
If inflation rises, the low yield could cause you to lose money on an inflation-adjusted basis.
Finally, you could buy Treasury Inflation-Protected Securities (TIPS) whose principal and interest payments adjust with inflation.
Yields on inflation-sensitive 10-year Treasury notes have fallen from 3.7% in February to about 2%.
In inflation-adjusted terms, total compensation was 2.8 percent higher this year than it was in 2002.
Retail sales have been basically flat on a real, or inflation-adjusted basis, since the summer.
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Food, the other highly cyclical and inflation-prone indicator, remained subdued, gaining only 0.1% from November.
Note that you can get a risk-free real return of 3.5% on inflation-indexed U.S. Treasurys.
The Fed is hardly in a position to swing from a tight-money, inflation-fighting stance.
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It is no surprise that the ECB bank and inflation-fearing Germany hope to scotch this deal.
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Shiller used the average real (inflation-adjusted) earnings over the past 10 years in his analysis.
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While equities go through choppy periods and flat periods, their long-term inflation-fighting benefits have been well-documented.
One can only hope that he owns some tax-exempt inflation-indexed bonds, just in case.
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Gartman noted that the era of the Fed as an inflation-fighting institution is now over.
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Disposable personal income growth remains limited, but on an inflation-adjusted basis has been virtually non-existent.
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Central banks use a variety of devices to convince markets of their inflation-fighting credentials.
Some providers have launched various "inflation-rate bond" products into the market in recent times.
In the long term, prices will rise and nothing will be any different in inflation-adjusted terms.
The next chairman may have to be relatively hawkish early on, to bolster his inflation-quashing credentials.
The past four years stand out as those with the highest inflation-adjusted spending levels by far.
Revenues to the federal government have been down since reaching their highest inflation-adjusted levels in 2007.
The destruction of Bretton Woods in the early 1970s led to a horrific, inflation-wracked decade.
Its employees are guaranteed an inflation-linked pension so it meets that promise by buying inflation-linked bonds.
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