Thursday, June 14, 2012

Price Anticipateing inflation

The book doesn't really make light of this but when someone gives out a loan inflation has to significantly determine that price.

When you give out a loan you not only charge interest to make money on lending money, but also to get the total value back on your investment.

I believe anything that is financed has its price determined by inflation after costs are covered.

Anticipated inflation:


http://www.clevelandfed.org/research/data/inflation_expectations/index.cfm

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