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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: BGR who wrote (77371)3/9/2000 12:48:00 PM
From: Freedom Fighter  Read Replies (1) | Respond to of 132070
 
BGR,

I don't recall how the conversation started, but I was attempting to identify all the things that can influnce a currency because of a question you posed.

Real interest rates are not just a function of growth. They are also a function of time preferences, savings levels, return on capital and other things. While I agree 100% with you point that interest rates and economic growth are also correlated, I believe to simply say growth and interest rates are basically one factor is not correct. They are related but independent.

There are lots of things that move currencies. If I understood them all completely I would a rich currency trader.

There is no big deal in central banks making moves in the currency and bond markets. I simply said that they can influence currencies. You are making it more than that.

Wayne