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NY
2014/11/05 13:08
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No, I'm not particularly sporty
http://www.rabmad.com/authors/
nizagara 100 But any inflationary trends that start off benignly can develop into the opposite. If the eurozone, for instance, were to undergo a burst of low inflation brought on by weak commodity prices, that would be good at first. Yet if this led to low expectations of inflation, which then became the basis for lower inflation rates, then there would be trouble ahead. For the eurozone needs real interest rates and bond yields to be low, or ideally negative, in order to keep down the real cost of government funding and the real value of accumulated debt.
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>>19 > No, I'm not particularly sporty http://www.rabmad.com/authors/ nizagara 100 But any inflationary trends that start off benignly can develop into the opposite. If the eurozone, for instance, were to undergo a burst of low inflation brought on by weak commodity prices, that would be good at first. Yet if this led to low expectations of inflation, which then became the basis for lower inflation rates, then there would be trouble ahead. For the eurozone needs real interest rates and bond yields to be low, or ideally negative, in order to keep down the real cost of government funding and the real value of accumulated debt. >
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