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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: NOW who wrote (210821)12/20/2002 10:44:07 AM
From: reaper  Read Replies (1) of 436258
 
<<but if deflation were to develop, options for an aggressive monetary policy response are available>>

what was it that Creamer used to say...err... WRONG!!!

if deflation were to ever DEVELOP (as opposed to threaten to develop, which is where we are now) then it is game over. policy has no traction if the general price level, wages, and especially ASSET prices are falling. you'd think at the age of 150 or whatever the f8ck that senile old man is he would have learned a little bit of economic history.

Cheers
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