Gold has long been viewed as a potential inflation hedge within an investment portfolio.
Those in attendance at the two-day Central Economic Work Conference said pressures could arise from potential inflation and asset bubbles, meaning higher interest rates could be on the horizon.
When output is below its potential, inflation tends to fall even if growth is brisk.
As long as output remains below potential, inflation should continue to fall from its already low level.
When the velocity of money turns up and meets a higher supply we have the potential for inflation.
Many AAII members also listed the expiring Bush tax cuts and potential future inflation as issues they are paying close attention to.
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Gold benefits from lower interest rates since they increase the potential for inflation whenever the economy recovers and due to weakness that might be expected in the U.S. dollar.
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He cited potential for inflation, currency debasement and a re-heightening of crises such as U.S. and European debt issues, although he concedes gold has lost some of its allure for now as many investors instead turn to the surging stock market.
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Professor Hayek - the godfather of Thatcherite economic policy - put the idea forward as a potential cure for inflation, then the biggest threat facing the UK economy.
With a still shaky economy, pathetically low yields on fixed income, skyrocketing medical costs, the potential of rising inflation, and the looming bankruptcy of Social Security and Medicare, many of the employees we work with are rightfully concerned about their prospects for a comfortable retirement.
But no, in the interest of full transparency, we had Bernanke warning about how the Fed expected still more negative pressure ahead from the housing collapse, worsening labor markets, a credit crunch that may have still more shoes to drop, and revealing that the Fed was also beginning to worry about the potential for rising inflation.
The authors, Charles Fleischman and John Roberts, tease out the economy's potential by analysing how inflation, unemployment and other variables have behaved.
But the Fed has always closely eyed wage growth, which has been edging up lately, as the biggest potential threat to move the inflation needle higher.
As the cost consumers pay for goods remains subdued but input costs rise, pushed by commodity-cost inflation, input-price inflation has the potential to hit margins and thus profitability.
The conventional wisdom is that Fed monetary policy has been extremely easy, there is a great potential for an acceleration in inflation already baked in the cake, and a return to quantitative easing would be a drastic step.
Trying to boost growth well above its potential could result in inefficiency, inflation and overheating, which are not sustainable.
When the economy is operating below potential there is little risk of inflation.
There are several reasons why I feel that inflation, while a potential danger in the future, represents very little threat over the next couple of years.
Though AAII members had been optimistic about the direction of stock prices, there was underlying unease about jobs, the federal deficit and the potential for rising interest rates and inflation.
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The second risk is that the central bankers pay too much attention to potential weakness while underestimating the dangers from inflation.
With the economy running so far below its potential, the Fed still believes that inflation is more likely to fall than to rise.
As there is almost no evidence of consumer-price inflation, either actual or potential, Mr Greenspan can present this week's rate rise as an act of great prudence.
Yet Bernanke seems to possess some Keynesian baggage, using such nomenclature as "aggregate demand, " "core inflation, " "potential output" and "output gap, " as though the economy were made up of interchangeable parts.
If not reversed, these developments, together with a pace of growth that is likely to fall short of potential for a time, should lead inflation to moderate later this year and next year.
Investors continue to view gold as a substitute currency to preserve purchasing power and as insurance against potential monetary turmoil (e.g. inflation).
In the case of gold, traders see potential for a pick-up in Chinese inflation, which may trigger buying of gold as an inflation hedge by Chinese citizens.
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Money in motion provides the possibility of gains in excess of inflation, but also the risk of potential losses.
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But the focus of criticism has shifted to the deterioration of government finances and the potential for higher future taxes, borrowing costs and inflation.
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