The short answer—yes—it turns out it is as simple as the price: If there is a greater demand for a good than you can supply, you should get a better price for it.
A quick look at the economic literature provides compelling evidence that there is a lot more supply than demand for financial asset classes. A 2013 study published in the Journal of Financial Economics found that asset prices are very sensitive to the liquidity of investors in them.
What does supply actually mean?
In other words, what does supply actually mean?
A supply inversion occurs when consumers begin to demand goods and services at higher prices than they can get, rather than the other way around.
Economists call it a liquidity trap.
In short, it is a kind of reverse “in effect.” If I buy $5 worth of an asset on the news, but $1 worth of the same asset is available at a lower price, then all $5 of the assets I purchased are worthless.
In real life: In the real world, the prices are usually low because the demand for them is low.
Inflation of asset prices tends to be highest after periods of low interest rate policy. The reason is that as interest rates rise in response, the cost of borrowing goes up, encouraging people to stay in debt.
In the US, rates are low by historical standards and people are in a debt/GDP equilibrium.
At the end of 2016, US GDP was around $20 trillion. Inflation was in the single digits.
The US government is spending about $4 trillion a year (compared to US GDP) on fiscal programs.
The US central bank keeps an interest rate stable at 0%.
If interest rates were rising, there would certainly be a shortage of US dollars.
That would cause prices to rise.
This has been the real picture in many countries in the world. The only way a central bank can overcome a shortage of dollars is to increase the supply of dollars.
In short, if a central bank is not willing to buy money with US dollars at the discount rate, there will always be a shortage of dollars—and a rise in prices.
And a lack of dollars causes more inflation. There are many more people unemployed today than there were when the last recession started.
A supply inversion also causes shortages as people sell their home to buy more of the same asset. The reason
swing trading software signals coupons and promotions, swing trading software signals catalogue, swing trading stock picks newsletters images of hearts, swing trading stock picking services review, swing trading vs day trading which is more profitable wool warehouse