RECY Looking Good... A Message Board

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Non-Tech : RECY Looking Good... A

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To: Brewmeister who wrote (5908)	9/29/1998 9:51:00 AM
From: ed doell	Read Replies (1) of 7006

>> If lower interest rates can accelerate the economy, it can create excess demand driving prices up. So, it is possible to turn things around. I'm not sure Japan is a great example of the failure of low interest rates since its economy and market structure is so screwed up. << ** Japan these days is an excellent example of a deflation process in action, particularly its psychological reactions to it. If you think the US economy is in a deflationary scenario, the conventional application of lower interest rates is just a symptom, not a remedy, of deflation in action. Maybe a closer look at Japan's economy will make this clearer for you, Ed

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