EffectofInflation

　　1.Fordeposit

　　FromtheFishereffectwekwonwhenexpectedinflationrises,interestrateswillrise.asweknowrealinterestrateequalsthenominalinterestrateminustheexpectedrateofinflation.Soifinflationmorethanthenominalinterestrate,saversdon’twillingdepositinbank.

　　2.Forinterestrate

　　Wheninflationrises,inordertocallinmoremoneyandreduceliquiditycentralbankwillriseinterestrates,butthismeasurewillincreaseenterprise’sburdenandcutdowntheincome,sousuallycentralbankwillimprovereserverequirements.

　　3.Forbond

　　(1)Anincreaseintheexpectedrateofinflationwillcausethedemandforbondstodecline.Anincreaseinexpectedinflation,willleadtohighercapitalgainsforphysicalassets,Theresultingriseintheexpectedreturnstodayontheserealassetswillleadtoafallintheexpectedreturnonbondsrelativetotheexpectedreturnonrealassetstodayandthuscausethedemandforbondstofall.（2）Anincreaseinexpectedinflationcausesthesupplyofbondstoincrease.Asallweknown,Foragiveninterestrate,whenexpectedinflationincreases,therealcostofborrowingwillfalls,hencethecompanywantsupplymorequantityofbonds

　　4.Forstockmarkets

　　Shortandlowinflationisgoodforthestock,becausethegoods’priceincreasewillincreasecompany’sincome.Andmoremoneywillinflowinstockmarket,thepricewillincrease,butseriousinflationwillleadtointerestrateraise,andraisetheinterestratesisbadforthestock.

　　4.Forgold、silver

　　Goldasnaturalcurrency,it’sagoodwayforinvestortoresistinflation.Anincreaseininflationratecausesthedemandofgoldtoincrease.Thepriceofgoldshouldbepositivelyrelatedtotheexpectedinflationrate.Becausethegoldmarketrespondsimmediatelytoanychangesinexpectedinflation,itisconsideredagoodbarometerofthetrendofinflationinthefuture.Weshouldkwondollarandgoldhaveadelicaterelationship:ifdollar’spricedecreasethegold’spricewillincrease.

　　这是通货膨胀对金融的影响