Monday, January 3, 2011

Analysts believe that the long-term stagflation in the U.S. economy will not.

<P> On Friday introduced a number of U.S. data, so that all the world's largest economy may fall into "stagflation" of the concerns increased sharply: Economic growth continued to slow, while inflationary pressures continue to increase. .However, analysts view, price increases to cool the economy with the situation should be only short-term phenomenon. .</ P> <P> stagflation concerns warming </ P> <P> It http://finance. Hearing on Friday, the New York Fed announced February U.S. manufacturing index dropped sharply, only -11.7 for the past .the first time in three years, dropped to negative, indicating the manufacturing sector outlook is not optimistic; At the same time, in January year on year increase in U.S. import prices hit a record high of 13.7%. .</ P> <P> same data released Friday showed U.S. consumer confidence declined significantly in February. .Reuters / University of Michigan in February both current conditions and expectations index sharply lower. .</ P> <P> "the latest data released for market trends related to economic stagnation to provide the basis to say." RBS Greenwich Capital's Ruskin, chief international strategist said. .Some people worry that the 70s of last century as a situation of stagflation that would make a comeback. .</ P> <P> Although most analysts believe that inflation will ease, but the problem is that inflation will slow down the speed of how fast. .</ P> <P> inflation is expected to ease </ P> <P> However, former Federal Reserve Chairman Alan Greenspan said last week that the U.S. economy has not reached the degree of stagflation, he also pointed out the possibility of a U.S. recession at 50% .. .Bernanke, Greenspan's successor to agree the forecast recession. .He believes that U.S. inflation in the next few quarters will ease, this view was shared by many people. .</ P> <P> economists said that although in the short term it may be difficult to adapt to American consumers about $ 3 per gallon, high oil prices and the rising prices of daily necessities, but at least the situation will not continue to deteriorate, and .downturn in demand momentum will eventually cool down inflation. .</ P> <P> Wettin Citigroup analyst, said: "We are about to find itself is to solve the high prices (inflation) remedy the problem." He also said inflation has eroded the real wage income of the people .and inhibited the consumers to purchase non-essential consumer goods. .</ P> <P> Economic Cycle Research Institute (ECRI) A director Chu said that the agency compiled indicators of future inflation is still in a downward trend among the leading indicators of even its weekly reach recession levels. .</ P> <P> senior member of the Brookings Institution in Washington, said Bailey, the current U.S. form a "stagflation" situation still lacks an important part of the pay rise. .The industry noted that the previous one important manifestation of economic stagnation, that is, rising prices lead to wage increase, thus promoting the vicious cycle of commodity prices continue to rise. .</ P> <P> Another point to be noted that the property market is cooling a positive impact on the cost of living decreased, while core inflation in the cost of living is one of the largest share. .Meanwhile, the cost of durable goods also declined, these factors will curb inflation. .</ P>.

No comments:

Post a Comment