All in all, economists agree that while no scheme for managing
an economy is perfect, one battle—the battle against inflation—
has to be won if there is going to be hope for long-term
growth.
But even such a cure-all has its downside. In this case, it is
that the roller-coaster ride to lower inflation can be much more
profitable for investors than the stable price environment the containment
of inflation brings. That is because there is a one-time
upward revaluation of the value of assets, like stocks, bonds, and
real estate, as inflation in wrung out of the system. And investors
have already profited from that.
an economy is perfect, one battle—the battle against inflation—
has to be won if there is going to be hope for long-term
growth.
But even such a cure-all has its downside. In this case, it is
that the roller-coaster ride to lower inflation can be much more
profitable for investors than the stable price environment the containment
of inflation brings. That is because there is a one-time
upward revaluation of the value of assets, like stocks, bonds, and
real estate, as inflation in wrung out of the system. And investors
have already profited from that.
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