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Pastimes : Ask Mohan about the Market
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To: Tommaso who wrote (8592)11/19/1997 9:12:00 PM
From: Rmn  Read Replies (3) of 18056
 
i'm not an expert on financial markets, but i do understand that inflation is not caused by the price of goods, but by the value of money. Inflation is a monatary phenomenon only. We have inflation right now in the financial markets. If the Japanese sell US bonds the $ will weaken for several reasons. 1)The conversion of all those dollars to yen. 2)The Fed may have to print money simply to pay off the Japanese.
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