ed....yes it's obvious DR-DR is not eco Dr..
but guess what. In addition to the relationship of unemployement and inflation being overridden the last years.(lower unemp tends to casue inflation pressure)I forgot the guy credited with this study but his work is being obsoleted since unemployement is dropping for yrs and so is inflation. I think that productivity, technology advances,changing from industrial skills to information skills and mfg'ers just can't raise prices are overriding the relationship.
The law of all resources and goods are scarce is also being transcended by the fact that no resource or good is scarce given technology. My PhD work was on this 27 yrs ago.. It was a real eye opener then but now i think someone has made the theory famous...
I didn't finish my PhD.
i see in this post you did mention waht I brought out in my last post to you.
you said "Another factor you did not consider in your equation is the currency
effect. US imported lot of consumer products from Asia, cloths, consumer
electronics, DRAM, SRAM ..... etc, you name it, this will
further reduce the inflation pressure in US. So I think our currency
is the most over valued currency , fortunately, our productivity was
increased significantly in the past 10 years to back up the currency,
because the unit cost of product was reduced as a result of productivity increased,
eventhough the wage of wokers are increased."
You also said this" This is why I always
said high tech is the key for propersity, The high Tech industry will
lead the world well into the 20th centry, a world of propersity
and continuous economy growth and low or even no inflation."
Did you read my paper???? |
