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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: tradermike_1999 who started this subject10/24/2000 4:54:55 PM
From: tradermike_1999  Read Replies (1) of 74559
 
This report is a must read to understand why we have had such low inflation the past years. I plan on discussing it in the future after I finish my project on stock sectors and economic cycles:

Understanding the Recent Behavior of U.S. Inflation
by Robert W. Rich and Donald Rissmiller
Federal Reserve Bank of New York, July 2000 Volume 6, Number 8

One of the most surprising features of the long current expansion has been the decline in price inflation through the late 1990s. Some observers interpret the decline as evidence of a permanent change in the relationship between inflation and economic growth. But an analysis based on a standard forecasting model suggests that conventional economic factors - most notably, a decrease in import prices - can account for the low inflation rates in recent years.

ny.frb.org
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