Author Post
Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets. We can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past. But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?
— Alan Greenspan, chairman of the Federal Reserve; December 1996
Many thanks to these extravagantly attractive reviewers:
Henzoid for pushing me toward better characterization!
Pedantique for diving deep into the underlying themes!
Sebarus for giving me the confidence to post!
leo60228 for also giving me the confidence to post!
Lt Flops for also also giving me the confidence to post (as well as being a huge nerd)!
Like the article? Check out SCP-4882 — a story about leap seconds… and the end of the world.
