Inflationary Psychology financial definition of Inflationary Psychology. Inflationary Psychology finance term by the Free Online Dictionary.

Inflationary Psychology

How increased inflation influences the behavior of economic actors. It is commonly believed that people borrow more during high inflation because they wish to have more cash to buy goods and services in case prices continue to rise. Prices then rise anyway because of the increased cash in circulation and higher demand for goods and services. In other words, inflationary psychology predicts that inflation can become self-perpetuating. See also: Behavior Economics.

inflationary psychology

Consumers' belief that prices will inevitably rise, a belief that drives them to speed up purchases especially of real assets (that is, gold, diamonds, and real estate) and avoid investment in financial assets (that is, stocks and bonds). As a result, the consumers themselves can cause the inflation that they fear will occur.

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No references found	Reagan's patience enabled the Federal Reserve to maintain a punishing and increasingly unpopular policy long enough to alter inflationary psychology. Lessons from the great inflation: Paul Volcker and Ronald Reagan's ... by Samuelson, Robert J. / Reason Higher inflation, soaring energy costs, troubled credit markets and worries about an inflationary psychology don't look like going away any time soon. Decline and fall of the cult of shares by guardian.co.uk / guardian.co.uk However, hard pegs may be desirable, particularly in countries whose political and monetary institutions are especially weak: they may be the only way to break inflationary psychology and to stabilize the economy. Monetary policy by Mishkin, Frederic S. / NBER Reporter	Inflation Accounting Inflation des couts inflation guard inflation hedge Inflation hors energie et alimentation Inflation importee Inflation inertielle Inflation larvee Inflation latent Inflation non corrigee Inflation par la demande Inflation par les salaires Inflation Premium Inflation Rate Inflation Risk Inflation Uncertainty Inflation-Adjusted Return Inflation-escalator clause Inflation-Indexed Securities Inflation-Indexed Security Inflation-Linked Certificates of Deposit Inflation-Linked Savings Bond Inflation-Protected Annuity Inflation-Protected Security Inflationary Gap Inflationary Psychology Inflazione Inflazione a due cifre Inflazione causata da aumenti salariali Inflazione da costi Inflazione dovuta all'incremento della domanda Inflazione occulta Inflazione strisciante Inflazione strutturale Inflection Point Inflexible expenses Informacion confidencial Information Agent Information asymmetry Information Circular Information Coefficient Information Content Effect Information Costs Information memorandum Information Ratio information reporting Information Returns Information Services Information Signaling Information theory Information-Motivated Trades	Inflation-indexed securities Inflation-Indexed Security Inflation-Linked CD Inflation-Linked CDs Inflation-Linked Certificate of Deposit Inflation-Linked Certificates of Deposit Inflation-Linked Savings Bond Inflation-Linked Savings Bonds Inflation-Linked Securities Index inflation-proof Inflation-Protected Annuities Inflation-Protected Annuity Inflation-Protected Annuity Inflation-Protected Annuity Inflation-Protected Annuity Inflation-Protected Securities Inflation-protected security Inflation-protected security Inflation-protected security Inflation-protected security inflationary inflationary inflationary inflationary inflationary Inflationary gap Inflationary gap Inflationary Gaps Inflationary Gaps Inflationary Impact Statement Inflationary Psychology Inflationary Risk inflationary spiral inflationary universe Inflationary universe cosmology inflationism inflationism inflationism inflationism inflationism inflationist inflationist inflationist inflationist inflationist inflationists inflationists inflationists inflationists inflationists inflator inflator inflator inflators inflators inflators Inflatus Inflatus Inflazione Inflazione a due cifre Inflazione causata da aumenti salariali

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Reagan's patience enabled the Federal Reserve to maintain a punishing and increasingly unpopular policy long enough to alter inflationary psychology.

Lessons from the great inflation: Paul Volcker and Ronald Reagan's ... by Samuelson, Robert J. / Reason

Higher inflation, soaring energy costs, troubled credit markets and worries about an inflationary psychology don't look like going away any time soon.

Decline and fall of the cult of shares by guardian.co.uk / guardian.co.uk

However, hard pegs may be desirable, particularly in countries whose political and monetary institutions are especially weak: they may be the only way to break inflationary psychology and to stabilize the economy.

Monetary policy by Mishkin, Frederic S. / NBER Reporter

Inflation hors energie et alimentation

Inflation non corrigee

Inflation par la demande