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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Spekulatius who wrote (58614)12/6/2016 6:15:33 PM
From: staring  Respond to of 78748
 
Spekulatius,

Yes, my approach is too simplistic. But the idea is to illustrate the main drivers. Not all the debt is owned by private investors. Part is owned by central banks.

Once you start tightening monetary policy you are taking out money from circulation. And the main drivers are interest and lower liquidity in debt markets... Less money circulating leads to lower inflationary pressures...