Inflation a Bigger Risk Than Recession: Quadratic's Davis

Inflation a Bigger Risk Than Recession: Quadratic's Davis

Assessment

Interactive Video

Business, Social Studies

University

Hard

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The video discusses the current concerns about inflation, questioning whether it is transitory or more persistent. It reviews historical models of inflation, such as the Phillips curve and monetary theory, and their limitations. The discussion shifts to modern monetary theory and the impact of government spending on inflation. Strategies for hedging against inflation, including the use of ivol ETF and interest rate markets, are explored. The video also examines the effects of inflation on fixed income investments and the importance of portfolio diversification.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which historical model was used in the 60s to understand inflation?

Monetary Theory

Phillips Curve

Modern Monetary Theory

P Star

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential consequence of increased government spending according to the transcript?

Lower interest rates

More persistent inflation

Increased commodity supply

Decreased inflation

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which commodity is mentioned as being potentially crowded out by government spending?

Gold

Copper

Oil

Silver

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is inflation considered a bigger risk than a recession for investors?

It leads to higher interest rates

It decreases purchasing power

It increases commodity prices

It causes economic growth

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a suggested strategy for investors to protect against inflation?

Focusing on short-term bonds

Maintaining a diversified portfolio

Investing solely in technology stocks

Avoiding international markets

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one method mentioned for hedging against inflation?

Investing in real estate

Using over-the-counter swaps

Buying government bonds

Increasing cash reserves

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the OTC swaps market help global bond issuers manage?

Bond risk

Currency exchange rates

Stock market volatility

Commodity prices