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To: Metacomet who wrote (60757)10/17/2000 7:42:03 PM
From: CF Rebel  Respond to of 99985
 
"Rather than speculate on secondary effects, I would like to know if anyone thinks a trillion dollar tax cut, targeted as discretionary funds due to the recipients, will be inflationary?"

A conundrum I think. I say this because if the trillion were used to pay down national debt instead, thus reducing credit demand and lowering interest rates, would *that* stimulus be seen as inflationary? It seems that the Fed would. I used to think we'd be rewarded if the debt were paid down, but other, darker powers would see danger in runaway growth/inflation, no?

CF Rebel