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Politics : Formerly About Advanced Micro Devices

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To: EricRR who wrote (115722)6/13/2000 1:59:00 PM
From: Scumbria  Read Replies (1) of 1578930
 
Ratbert,

He repeated over and over that he believes that the the micro evidence shows that the majority of growth since 1995 was structural, not cyclical, in nature. This shoots to the heart of the idea that one needs to raise interest rates when the economy overheats, by raising the bar for what "overheating" (sustainable growth) is. I believe this speech was very significant.

Furthermore he mentioned the something like "the rapid reallocation of capital to higher return technology investments."


Translation: "Worldwide demand for technology was booming. We (the Fed) screwed up and we want investors to go undo the damage we already did."

Scumbria
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