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Politics : Idea Of The Day

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To: PMG who wrote (34945)11/2/2000 3:08:59 PM
From: IQBAL LATIF  Read Replies (3) of 50167
 
'Higher unit labour cost' cuts throught the thesis of deflationary scenerio, whereas higher productivity gains cuts the very basis of wage inflation, these two opposite cycles of virtue are at the heart ofg the structural change that US economy has see in the last five years.. this thread from very begining is great propenent of the death of inflation and death of realtionship between inflation and low unemployment.

The markets as I have once clearly highlighted are sum total of reality and gambling instincts, the gambling instincts at 5048 got little ahead and here we are languishing at Oct 99 levels.. the higher productivity, the take off of economic growth in ASEA and Japan and Euro land flourishing through exports as a result of weakened Euro has taken a lot of burden off the US as the oasis of the global markets.. in my opinion these very volatility are reflective of the inherent strength of the markets.. in deflationary scenerio I would be concerned with falling prices and slowing growth, both these phenomenon are absent... fwiw.
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