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Technology Stocks : MRV Communications (MRVC) opinions?
MRVC 9.975-0.1%Aug 15 5:00 PM EST
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To: Duffeck who wrote (41256)6/26/2003 1:19:38 PM
From: Greg h2o   of 42804
 
<<Scuze me but would somebody splain why lowering interest rates is posed to help minimize the risk of DEFLATION. I thought INFLATION (the opposite of deflation) and HIGH interest rates went hand in hand like in the Carter years!>>
fairly simple explanation. you need to look at cause and effect. not just effect. lower fed fund rates spur growth (through lowering cost of capital), which in turn will eventually bring market interest rates higher. Carter's years were an example of staglation... different than simple inflation....
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