[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/prg/jnlaop/v2019y2019i1id614p21-31.html
   My bibliography  Save this article

Macroeconomic Cycle Made Visible in Real Terms as Protection against Asset Illusion

Author

Listed:
  • Uwe Bergold
Abstract
The current historically unparalleled global debt crisis and the resulting momentous valuation anomalies notably affecting the stock and bond markets (the historically low-interest rate level) are making it increasingly difficult for both institutional and private asset managers to generate an actual yield above the inflation rate. The problems with building wealth, and hence with pensions plans, first began at the turn of the millennium when the burst of the largest stock market bubble of all time firmly put the price distortions of assets into the public eye. This milestone also marked the beginning of a secular bust phase, which has been on a real gradual downtrend and despite nominal price increases is still ongoing today. However, this problem only becomes visible upon real evaluation, in ounces of gold. Contrary to the ubiquitous nominal view in uncovered paper currencies, only this real view, valued in ounces of gold, protects both private and institutional investors from an illusion of wealth.

Suggested Citation

  • Uwe Bergold, 2019. "Macroeconomic Cycle Made Visible in Real Terms as Protection against Asset Illusion," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2019(1), pages 21-31.
    • Handle: RePEc:prg:jnlaop:v:2019:y:2019:i:1:id:614:p:21-31
    DOI: 10.18267/j.aop.614
    as

    Download full text from publisher

    File URL: http://aop.vse.cz/doi/10.18267/j.aop.614.html
    Download Restriction: free of charge
    File URL: http://aop.vse.cz/doi/10.18267/j.aop.614.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.aop.614?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    global debt crisis; stock market bubble; asset illusion; monetary units of measure; boom and bust cycle; Shiller P/E Ratio; Gold; paper currencies; inflation;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlaop:v:2019:y:2019:i:1:id:614:p:21-31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.