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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: EL KABONG!!! who wrote (50039)5/15/2004 3:37:15 PM
From: Seeker of Truth  Read Replies (2) of 74559
 
Thanks Kerry, what you say sounds quite reasonable. It's just a little strange -- when a south American country has increased inflation it does not cause the currency of that country to rise relative to world currencies. People are chasing real rates and inflation may be accompanied by falling or rising or relatively unchanging real rates of interest. I think rising rates are most common because nobody knows how high the inflation will go so there is an uncertainty premium.
Well what happened to Brazil or Argentina doesn't seem to be happening to the US ----yet.
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