IndexIntroductionWhat are some factors that contribute to the rising inflation?How has inflation affected the market?Financial measures in the US government's inflationary riseImplementation of further monetary easing measures (so-called QE 3) MBS purchasing policies recently decided at the September FOMC Conclusion Recommendation Introduction Measuring inflation is a difficult problem for government statisticians. To do this, many representative elements of the economy are collected in what is called a “market basket”. The cost of this basket will be compared over time. Consequently, the price index representing the cost of today's market basket will be the ratio to the cost of the same basket in the current fiscal year. In North America there are two main price indexes that measure inflation. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Consumer Price Index (CPI): A measure of the change in prices of consumer goods and services such as gasoline, food, clothing, automobiles. CPI measures price fluctuations from the buyer's perspective. US CPI data can be viewed at the Bureau of Labor Statistics. Producer Price Index (PPI) - A type of indicator that measures the average change when domestic producers of goods and services sell prices. PPI measures price fluctuations from the seller's perspective. US PPI data can be viewed at the Bureau of Labor Statistics. What are some factors that contribute to rising inflation? The automotive, clothing and housing sectors are the most important in calculating underlying inflation. As for cars, as mentioned above, gasoline has fallen, and the impact of the earthquake in Japan has almost reached the end of car prices, so inventories have returned to the normal level and there is no impact. As for clothing, cotton as a raw material has collapsed in recent months, there is no reason for an increase in the price of the fiber. The rest are homes. As you know, the housing recession in the United States affected many families and was the result of abandonment of homes. Therefore, it is caused by the shrinking of rental housing where those people live. According to the survey, the demand for rental housing is expected to vary from 360,000 to 470,000 in 2010 from 2010 to 2020, and accordingly see the graph showing the deviation of the change in rent and house price As long as rents increase of rental properties has shown high growth since around 2005, this is also a positive deviation in 2011. On the other hand, rental homes are only supplied with 125 thousand cases in 2010, and the number of new rental housing fell sharply in fiscal 2011, so the pace of supply is expected to remain slow in the future. As a result, it can be seen that the irony of fate is occurring that the increase in rent of rental housing leads to inflation. How has inflation affected the market? Many analysts say that valuations judged in light of corporate earnings are elevated by past standards and that employment data shows that the economic fundamentals supporting the stock are strong, so I believe the stock market is separated. Inflation has not yet risen from its current level, and as long as the pace is decent, the stock has room to rise. Movements resulting from healthy economic growth, U.S. deficit spending, and increasesThe world central bank's interest rate cuts from extremely low levels have lifted US bond yields for the first time in four years. Rising yields could counter the attractiveness of high dividends paid to investors and raise financing costs for U.S. businesses and households, which could put pressure on economic growth. The first response to Wednesday's CPI data was that the S&P 500 e-mini futures ESc 1 fell to a record low of 2,627, while the yield on the benchmark US 10-year bond US 10 YT=RR rose to 2.891 %. Before weakening, the dollar overtook. DXY against the basket of major currencies. However, the stock recovered, moving back into the green after the opening bell, and the 10-year bond yield eased. Currency strengthening usually occurs in response to economic improvement, but even after the recent rally, the US dollar is near lower lows for the first time in four years. Some of these weaknesses are based on the reduction of economic measures by central banks other than the FRB. As of current concern, if the US economy does not show a significant increase in inflation, it could tighten the Fed's hands on raising interest rates and lowering the dollar. Financial measures in the US government's inflationary surge Implementation of further monetary easing (so-called QE 3) As mentioned above, the Fed stated at the FOMC that "there is the possibility that economic growth is not strong enough to achieve a sustainable improvement in the labor market without a single easing of monetary policy". We have decided on further monetary easing. first decided to purchase mortgage-backed securities (MBS) for an additional $40 billion per month. Furthermore, in the statement, “If the labor market outlook does not improve significantly, the committee will continue to purchase MBS, implement additional asset purchases and make necessary. We will use other policy measures accordingly.” Regarding the purchase of MBS, this time, so-called "open-type" asset purchase measures were adopted which did not specify either the maturity or the amount. Beyond that, as a period during which an unusually low FF interest rate is reasonable, "for now it is expected to be at least mid-15 years", and the time axis extends from "end at least 14 years" Until in August it was done. Furthermore, in order to support continued development towards employment maximization and price stabilization, the committee stated: “Over a considerable period after the strengthening of the economic recovery, we expect that a very moderate monetary policy stance will continue to be appropriate. The key interest rate could be kept at an unusually low level for an extended period. Although the policy adopted in the September decision is similar to the past measure, it does not clearly indicate the timeframe regarding the reference interest rate to determine whether it will be. an "open-type" asset purchasing policy, "the economic recovery. It is said to have initiated a new effort as FRB as the time axis was extended for a considerable period after the strengthening. MBS purchasing policies recently decided at the FOMC in SeptemberThe purchase of MBS decided on September 12, 2000 was carried out as part of credit mitigation measures from January 2009 to October 1998, except that the maturity and final scale are not clearly indicated Basically the same thing , we will purchase a fixed amount of agency MBS each month. Here I would like to outline the.