Version 1
: Received: 24 March 2024 / Approved: 15 April 2024 / Online: 16 April 2024 (16:21:32 CEST)
How to cite:
Gao, X.; Ni, F.; Wang, Y.; Jin, B.; Zhang, L.; Zhang, Y. On Static and Dynamic Strategic Approaches for Allocating and Managing Asset Values in Presence of Financial Inflation. Preprints2024, 2024041019. https://doi.org/10.20944/preprints202404.1019.v1
Gao, X.; Ni, F.; Wang, Y.; Jin, B.; Zhang, L.; Zhang, Y. On Static and Dynamic Strategic Approaches for Allocating and Managing Asset Values in Presence of Financial Inflation. Preprints 2024, 2024041019. https://doi.org/10.20944/preprints202404.1019.v1
Gao, X.; Ni, F.; Wang, Y.; Jin, B.; Zhang, L.; Zhang, Y. On Static and Dynamic Strategic Approaches for Allocating and Managing Asset Values in Presence of Financial Inflation. Preprints2024, 2024041019. https://doi.org/10.20944/preprints202404.1019.v1
APA Style
Gao, X., Ni, F., Wang, Y., Jin, B., Zhang, L., & Zhang, Y. (2024). On Static and Dynamic Strategic Approaches for Allocating and Managing Asset Values in Presence of Financial Inflation. Preprints. https://doi.org/10.20944/preprints202404.1019.v1
Chicago/Turabian Style
Gao, X., Luyao Zhang and Yudong Zhang. 2024 "On Static and Dynamic Strategic Approaches for Allocating and Managing Asset Values in Presence of Financial Inflation" Preprints. https://doi.org/10.20944/preprints202404.1019.v1
Abstract
The impacts of inflation on international finance are generally reflected in the decline of buying power, risks of investment and deposit loss from currency devaluation. For the purpose of optimized allocation and management of asset values, i.e., annual income or research grants, a framework of a three-level model for static financial management is presented to maximize banking interests, bonuses, and the remaining balance after spending necessary expenditures. Meanwhile, in retrospect to higher-level financial inflation, strategies of dynamic investment, i.e., posing regular tests of flipping coins, exploiting variations of the currency exchange rate, as well as applying the theory of broad money, are presented to increase the appreciation rate of net assets in and post the era of COVID-19. Quantitative evaluations in case studies verify the feasibility of improving the financial situation, indicating broader applications for budgeting and investing when US inflation rate is below 3.0%. Besides, combining approaches of static and dynamic strategies, the expected annual growth rate of individual zero-risk asset investment is predicted as within the range of 8.30~9.62% according to budgeted appreciation on net assets in 12 months, which is capable of overcoming negative impacts from higher level annual inflation, i.e., those as highest as 8.01% in the Year 2022.
Keywords
Static fiscal management; dynamic strategic approach; asset appreciation; theory of broad money; dynamic stochastic general equilibrium (DSGE)
Subject
Business, Economics and Management, Econometrics and Statistics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
