Heinz Blasnik- Views You Can Use Message Board

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Strategies & Market Trends : Heinz Blasnik- Views You Can Use

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To: Perspective who wrote (1458)	5/19/2003 1:06:22 AM
From: UnBelievable	Read Replies (1) of 4907

Then Why Won't They Be Able To Create An Inflationary Environment? I don't think that it is as free wheeling as you describe. But to the extent it is clearly there will be no barriers to increasing the inflationary pressure. The Fed can force long term interest rates below what they otherwise might be, but like all price controls it would have the impact of limiting the supply of capital. Ultimately it is capital which is responsible for growth and decreasing the incentive to capital formation hardly seems a recipe for growing the economy.

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