Some media owners operate in oligopolistic markets, with relatively few direct competitors, while others operate in more fragmented markets. Some media owners are able to expand their product offerings to new segments of marketers, the opposite of inflation while others have relatively fixed groups of potential marketers as customers. Treasuries and even shorting them, as major players like Goldman Sachs famously shorted mortgage-backed securities before that crash.

Not to be confused with Disinflation, a slowdown in the inflation rate. Browse other questions tagged currency inflation deflation cryptocurrency bitcoin or ask your own question.

Inflation Vs Deflation: An Overview

It also includes consumer goods imported from low-wage countries that are becoming more productive. Is this basically technology becoming more expensive for the same capability? Moore’s law states that the number of transistors that can be placed on a chip for the same price doubles every two years or so. By forcing more imagination into media planning, the process of establishing Batnas could yield genuinely better approaches to long-term marketing, even if preparing those alternatives requires higher costs in the short term.

• This downward pressure on real yields indicates that markets are beginning to assume that yield curve control is coming and that nominal yields won’t be allowed to rise.
• While all inflationary episodes exhibit rising prices, their causes can vary.
• However, inflation has remained stubbornly below the Fed’s 2% target.
• In support of the above, for the last several months nominal yields on 30-year Treasuries have been stable, while market-embedded inflation expectations have been rising.
• The U.S. Federal Reserve has a dual mandate to foster both price stability and “maximal sustainable employment.” In recent years the Fed has targeted a 2% rate for “core” inflation which excludes volatile energy and food prices.
• Central banks throughout the world use monetary policy to avoid both inflation and deflation.

If inflation were associated only with booming economies, Zimbabwe — which experienced roughly 11,000,000% inflation in recent years — should be the richest country on earth. If devaluing the currency yielded stimulus and improved competitiveness, then Greece’s many devaluations in the decades before it joined the euro should have made it the envy of Europe, not its basket case. Needless to say, such a run would unleash financial chaos and renewed recession. It would yield stagflation, not the inflation-fueled boomlet that some economists hope for. And there would be essentially nothing the Federal Reserve could do to stop it. “Bitter taste for drinkers as beer is watered down to save money”, The Telegraph, 15 January 2013.

And I note that the exact opposite is happening to Ariane Space right now; at only six launches a year, they’re having a hard time staying in the black. Turn that into sixty launches, they’d have all the work the opposite of inflation they could ever wish for. Start a thread on discussing inflation and space costs and such, and title it as such. Feel free to re-post pieces from here to there; none of these opinions are copywritten.

Macroeconomic And Market

Sometimes it is spoken of so-called “inflationary pressures” — particularly the so-called “wage price spiral.” There are several ways to define inflation, with varying usefulness and ability to explain the phenomenon. Another very direct way for fixed the opposite of inflation income investors to hedge inflation risk is via Treasury Inflation Protected Securities whose yield adjusts with changes in inflation. TIPS have performed poorly in recent years which is one reason why they are currently pretty inexpensive.

Is The Opposite Of Inflation

Food crop prices, which had been high because of the famine of 1816 that was caused by the year without a summer, fell after the return of normal harvests in 1818. Improved transportation, mainly from turnpikes, and to a minor extent the introduction of steamboats, significantly lowered transportation costs. The Great Depression was regarded by some as a deflationary spiral. A deflationary spiral is the modern the opposite of inflation macroeconomic version of the general glut controversy of the 19th century. Another related idea is Irving Fisher’s theory that excess debt can cause a continuing deflation. Whether deflationary spirals can actually occur is controversial, with their possibility being disputed by freshwater economists and Austrian School economists. In science, this effect is also known as a positive feedback loop.

That’s not great news for the Mars crowd, but at least things are moving slowly in the right direction. Of course a trend doesn’t predict the future, but it does give us a baseline for reasonable expectations. The digital computer is an age-defining type of invention, like the combustion engine, that comes along every once in a while and exposes a large amount of low-hanging fruit. The low-hanging fruit of the information age may be substantially harvested before the next age-defining development comes along, at which point the extraordinary growth in labor productivity may begin to level out. Another class of observations is that most labor-intensive industries are becoming more management-intensive, whereas other industries are achieving unprecedented levels of labor efficiency. The corporate paradigm is run by people managers for people managers. Wherever people have not been largely replaced by machines, there is a remarkable proliferation of people managers in ever-deeper and more convoluted organizational structures.

What Is The Opposite Of Inflation?

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How Does Aggregate Demand Affect Price Level?

Our marketing cookies let us to know when you interact with our marketing communications. We use Google Analytics to collect anonymous information about how visitors use our website. These cookies collect only non-personal information, and give us aggregate, non-identifiable insights into how our website is being used. Please note, if you accept our marketing cookies , we may also be able use Google Analytics to report website usage statistics about you individually. Implications for a diversified portfolio of equities and bonds could range from returns of -13% to +9% for the deflation and reflation scenarios, respectively. So the market is expanding slowly while the cost is going down slowly, resulting in relatively flat total spending on LVs. If everything keeps pace, the $500/lb point will come in about 40 years, as will payloads in the VHLV class.