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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: flyboy who wrote (53924)1/4/2001 10:28:13 AM
From: Cynic 2005  Read Replies (2) of 436258
 
<<The reason that we did not have inflation during previous years under looser monetary policy is that productivity gains were able to overcome the looser monetary policy (not unlike Japan) as I had used in my earlier example…>>

This all baloney! This crappy argument is given by the vested interest groups (Fed is one of them) to fool the ignorant massess. The simple reason inflation was not a threat was that there is too much over capacity. The very productivity gains you are talking about are available to you and your competition, which doesn't put you at any advantageous position over your competition. There are always exceptions but it will be nearly impossible for technology driven productivity gains to tame inflation. If the supply and demand picture has an imbalance towards demand side, you will have no inflation. Not when consumer has abundent choices.
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