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Politics : Ask Michael Burke
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To: Fred B. who wrote (60104)5/21/1999 9:06:00 AM
From: Mike M2  Read Replies (2) of 132070
 
Fred, sometimes an inflationary expansion of money and credit increases product prices and sometimes it inflates the price of financial assets. The big bubbles of this century -the US in the 20's and Japan in the 80's had stable product prices during the boom. You mention excess capacity- much of this came about due to excessive monetary ease in the Asian Tiger economies. Mike
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