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To: pater tenebrarum who wrote (4585)7/19/2000 4:03:14 PM
From: Archie Meeties  Read Replies (2) | Respond to of 436258
 
Exactly. The pull of equity markets is more powerful than that of government paper. Short term shifts occur around ecb and fed rate hikes, but longer term action is better described by the growth of the underlying economy. For no other reason, this should support a global bi or tri reserve system. Unless one thinks that the us economy can continue expanding ad infinitum.

Have you thought of any way to quantitate the effect of rate hikes vs. gdp growth on currency valuations? I guess a third variable would be inflation. I'm sure you're up for it. -g-