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Asset Prices Reveal True Inflation
The 2008 financial crisis was sparked by a significant deflationary event in asset prices, which had reached unsustainable highs in commodities and housing. This deflation led to serious leverage issues. In the aftermath, central banks aimed to create inflation to stabilize the economy. Although there were concerns about rising Consumer Price Index (CPI) due to extensive money printing, the actual outcome was significant inflation in asset prices. This type of inflation is perceived positively, as it reflects healthier economic conditions.