Based on a survey of Dutch households in which random subsets of respondents receive information about inflation, the paper shows that an increase in inflation expectations leads to a sharp negative effect on durable spending and that this is likely to be driven by the fact that Dutch households seem to become more pessimistic about their real income. 12.
IMF also predicted that total losses due to the current global financial crisis will top $ trillion, twothirds of which stem from the banking sector. The crisis and the sharia financial system Ladies and Gentlemen, The lesson we can glean from this crisis is that a sound and resilient economy is not based on speculative activity.