烈香杜鹃7366
Effect of Inflation1. For depositFrom the Fisher effect we kwon when expected inflation rises, interest rates will rise .as we know real interest rate equals the nominal interest rate minus the expected rate of inflation. So if inflation more than the nominal interest rate, savers don’t willing deposit in bank.2. For interest rateWhen inflation rises, in order to call in more money and reduce liquidity central bank will rise interest rates, but this measure will increase enterprise’s burden and cut down the income, so usually central bank will improve reserve requirements.3. For bond(1)An increase in the expected rate of inflation will cause the demand for bonds to decline .An increase in expected inflation, will lead to higher capital gains for physical assets, The resulting rise in the expected returns today on these real assets will lead to a fall in the expected return on bonds relative to the expected return on real assets today and thus cause the demand for bonds to fall.（2）An increase in expected inflation causes the supply of bonds to increase. As all we known, For a given interest rate, when expected inflation increases, the real cost of borrowing will falls, hence the company want supply more quantity of bonds4. For stock marketsShort and low inflation is good for the stock, because the goods’ price increase will increase company’s income. And more money will inflow in stock market, the price will increase, but serious inflation will lead to interest rate raise, and raise the interest rates is bad for the stock.4. For gold、silverGold as natural currency, it’s a good way for investor to resist inflation .An increase in inflation rate causes the demand of gold to increase. The price of gold should be positively related to the expected inflation rate. Because the gold market responds immediately to any changes in expected inflation, it is considered a good barometer of the trend of inflation in the future. We should kwon dollar and gold have a delicate relationship: if dollar’s price decrease the gold’s price will increase.这是通货膨胀对金融的影响
掬黛小公主
房价上涨 [网络] prices rise; [例句]股市上扬、房价上涨。The stock market is going up and house prices are rising.
