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Non-Tech : Invest / LTD
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To: Lucretius who wrote (5657)11/30/1998 12:13:00 AM
From: pigfarmer  Read Replies (1) of 14427
 
why would the deflationary spiral cause a decline in the dollar?

wouldn't falling prices imply a stronger dollar. and, while it is not a given that demand for goods and services would increase as prices fell, i would expect US consumers to continue to spend enough to utilize the excess capacity which creates deflation. after all, didn't we spend more than we saved last month? ;)

Especially as the cost of credit continues to ease?

bwdik?
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