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Price inflation and assets inflation
is generally understood and perceived as the rise in price of 'ordinary' goods and services, and official and central bank
policies in most of today’s world have been expressly directed at minimizing 'price inflation', assets inflation has not been the object of much attention or concern. An example of this is the housing market, which concerns almost every individual household, where house prices have over the past decade[when?]
consistently risen by or at least near a two digit percentage, far above that of the Consumer Price Index
Some political economists[who?]
believe that assets inflation has been, either by default or by design, the outcome of purposive policies pursued by central banks and political decision-makers to combat and reduce the much more visible price inflation.
This could be for a variety of reasons, some overt, but others more concealed or even disreputable.
Some think that it is the consequence of a natural reaction of investors to the danger of shrinking value of practically all important currencies, which, as in 2012 e.g., seems to them highly probable due to the tremendous worldwide growth of the mass of money. Their preference for real goods pushes their price up without any purposive policies from decision-makers.
Last edited on 14 March 2021, at 00:55
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