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Non-Tech : Deflation -- Ignore unavailable to you. Want to Upgrade?

To: PHILL who wrote (46)	1/11/2000 12:41:00 PM
From: jwk	Read Replies (1) \| Respond to of 621

I agree with everything you say, though I'd say there's room for discussion as to how exactly the IRA's fit into the aggregate mix of all the buy-side pressure sources. I have read recently where a couple of factors of the IRA funds are the steadiness --many contributors have a set amount deducted/invested twice a month, and that IRA money doesn't jump in and out they way individuals tended to do with mutual fund money 10-20 years ago. Basically, steady source of supply that tends to stay put. >>>...As I understand it the growth of production reduces the price of products, ...<<< I'd say it's the growth in efficiencies of production (once a necessary level of economy of scale has been achieved) which reduce the price of products. It seems that as long as that increasing efficiencies the driving force behind price reductions, we have a chance of not triggering the ruinous deflation (implosion) which marked the '30's, but of enjoying the benefits of a positive deflation.