Tag Archive: purchasing power

Economic Forecasts for 2015: Swiss Banks were too Optimistic

Our analysis of the forecasts of economic data for 2015 shows that the Swiss banks were too optimistic for most data. US growth, the oil price, inflation and interest rates are far lower than expected. The errors for stock indices were smaller.

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Interest – Inflation = #REF

Economists say real interest = nominal interest - inflation. They paint a false and misleading picture.

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Yield Purchasing Power: Think Different About Purchasing Power

The dollar is always losing value. To measure the decline, people turn to the Consumer Price Index (CPI), or various alternative measures such as Shadow Stats or Billion Prices Project. They measure a basket of goods, and we can see how it changes every year. However, companies are constantly cutting costs. If we see nominal—i.e. dollar—prices rising, it’s despite this relentless increase in efficiency. At the same time, the interest rate is...

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The Fairy Tale of Rising Competitiveness in the European Periphery

In our post we look on two questions concerning competitiveness for the European periphery: When will local production be cheaper than imported products? Do people have the money to buy these local products? It does not help reducing labor costs if local production costs still more than imported products. The second aspect is: even if …

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