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

To: Don Lloyd who wrote (5889)	7/16/2001 12:47:03 AM
From: Ilaine	Respond to of 74559

>>except for the government policies which maintain the nominal wage level and increase real wages, which you have told me is not all that important<< I don't know how important it was, but I know it didn't cause the deflation. If you look at the price of Japanese silk, and Bolivian tin, and so forth, you'll see that they deflated, along with every other commodity, before wage and price controls were instituted in the US. That's why timelines are important. Further, in deflations, prices don't all deflate at the same rate at the same time. >> the loan terms did not include a hedge against deflation, which it could have if it were thought to have been significant<< The free market is efficient, but it's not omniscient.