So, backing this out into plainer English, Credit Suisse's work finds that unless consumers think they are going to make more money to make up for a gap in their loss of purchasing power, near-term consumption will likely suffer. An expectations-driven quickening of inflation appears liable to be a negative for real consumption unless households are reasonably confident in the prospect of faster wage growth. Our regression analysis on household consumption function has actually indicated that a decline in the real interest rate driven by a rise in the expected inflation rate may actually have a negative impact on household consumption. The key problem here seems to be the adverse impact of rising inflation expectations on real household consumption. Here's the major passage (emphasis mine): "Lack of a robust transmission mechanism from rising inflation expectations to household consumption recovery seems responsible for the prolonged sluggishness of consumption and thus the failure of expected inflation rates to be held up steadily." Blowing Up Inflatable Body Swelling Up The user is able to inflate their body fully or partially. Account icon An icon in the shape of a person's head and shoulders.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |