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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: LLCF who wrote (4529)6/9/2001 5:44:17 PM
From: pezz  Read Replies (1) | Respond to of 74559
 
<<Dude, inflation starts when the fed keeps rates too low>>

Such is current wisdom. As I recall the worst inflation that we saw in USA came in the seventies. This was preceded by high deficit government spending and oil spikes and war.... More so than low interest rates. Further more we had lower interest rates in the fifties with low inflation.

I might add that Japan which this thread is so fond of pointing to when it suits there purposes [ so why can't I?] has had almost zero interest rates for quite some time whilst the economy continues to experience deflation

Monetarism is only a theory .