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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Frodo Baxter who wrote (606)9/8/1998 10:31:00 AM
From: Lee  Read Replies (1) of 3536
 
Lawrence,

"But back to the original contention. If you have an overvalued currency, you can have a loose monetary policy without causing inflation. This is what bubbles are made of. Some, most notably the Economist a few months ago, would contend that that's the situation we're in right now."

Now if you are suggesting that perhaps 300 Yen to the dollar is equilibrium, then we do not have an overvalued currency, perhaps we are not in a bubble. Gotta go and contact my broker.

Cheers,
Lee

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