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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: mishedlo who wrote (10507)3/19/2004 9:05:05 PM
From: Archie Meeties  Read Replies (2) of 110194
 
I actually think it might be a fed study that came to the conclusion that small changes in rates do little to effect currency flows in the modern era. They are more driven by perceptions of return on capital, trade balances, and geopolitical stability. Case in point, the yen, which would probably still appreciate against the dollar if they charged you for holding it.

As a footnote, the authors also noted that in some countries, such as Italy, small independent printing presses that could fit in the basement of a modest villa may also, for unknown reasons, have an inflationary effect.
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