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  • About
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    • Economic Growth and the Business Cycle
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Tag Archives: confidence

Short-Term Vs Long-Term Inflation Drivers

Monetary Policy and InflationBy Stuart AllsoppOctober 1, 2018Leave a comment

Intro: In the short term the demand for money tends to be the major driver of inflation. In the case of developed markets, improvements in economic confidence as shown by rising stock prices tends to correlate with higher inflation as the demand to hoard cash declines. In contrast, in emerging markets improvements in economic confidence…

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