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Technology Stocks : Compaq
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To: paul lin who wrote (9700)11/26/1997 5:48:00 PM
From: RetiredNow  Read Replies (1) of 97611
 
Paul,

<why is deflation good for the US economy>
I can answer that one. If we are talking about depreciation of the US dollar, then it is not good for everybody. It's good for exporters, so it's good for companies like Compaq who are trying to sell goods abroad because as our dollar weakens with respect to foreign currencies, foreigners can buy more US goods.

However, it's bad for importers, because our dollars buy less foreign goods. Therefore, it could affect Compaq's costs since our currency will buy less of the components that are manufactured abroad.

Just my 2 cents.
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