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

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To: westpacific who wrote (44118)10/25/2005 9:36:27 AM
From: Ramsey Su  Read Replies (3) of 110194
 
That is one scary article by our future fed chairman.

At the first sign of trouble, we can expect Bennie to do this:

Third, as suggested by a number of studies, when inflation is already low and the fundamentals of the economy suddenly deteriorate, the central bank should act more preemptively and more aggressively than usual in cutting rates (Orphanides and Wieland, 2000; Reifschneider and Williams, 2000; Ahearne et al., 2002). By moving decisively and early, the Fed may be able to prevent the economy from slipping into deflation, with the special problems that entails.

If that does not work, read on and draw your own conclusions regarding the feasibility of his ideas.
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