Asset price inflation

[1] When interest rates are low, investors and savers cannot make easy returns using low-risk methods such as government bonds or savings accounts.

When people talk about inflation, they usually refer to ordinary goods and services, which is tracked by the Consumer Price Index (CPI).

The primary beneficiaries of rising asset prices are usually those who earn the highest wages or salaries, since the tendency to save and invest is higher.

[citation needed] Some think that it is the consequence of a natural reaction of investors to the danger of shrinking value of practically all important currencies, which, as in 2012 e.g., seems to them highly probable due to the tremendous worldwide growth of the mass of money.

However, if the money supply has the potential to induce heavy general inflation (all major currencies in 2011/2012) none of these crashes may happen[citation needed].