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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: sandeep who wrote (30763)	2/25/2000 11:42:00 AM
From: Lee	Read Replies (1) \| Respond to of 50167

sandeep,..Re:.At the moment, the fed seems powerless to effect what they want. Targeting stock prices is criminal. Alan explicitly stated that they are NOT targeting stock prices but instead economic imbalances, some of which are caused by increased demand due to the so-called wealth effect of which stock prices are only a part. Historical evidence, lots of it by the way, shows that once there are no more bodies to fill jobs, the existing bodies with jobs are going to demand and GET higher wages. And our immigration laws are such that we can't import too many more bodies. And if you're thinking that we could use global resources to fill our commodity demand needs, we already are - see the trade deficit.<g> They (FOMC) just want the economy to slow enough that these good times can continue rather than be brought to a screeching halt by inflation. Lastly, if you're an old windbag economist that's lived through the economic imbalances of the '70s or '80s, then I guess that tends to color economic viewpoints more conservatively.<g> Not saying any of the FOMC are windbag economists, just pointing out that the Shadow Open Market Committee thinks that the FOMC has been way too loose with monetary policy and would have tightened more aggressively long ago. <g> Cheers, Lee