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Non-Tech : Deflation -- Ignore unavailable to you. Want to Upgrade?

To: Ahda who wrote (161)	11/19/2002 11:32:44 AM
From: ahhaha	Respond to of 621

I said Friedman should listen to me because I meant that in this era money doesn't manner. In the '80s Friedman was somewhat against the Reagan tax cuts. The monetarists believe all can be achieved by maintaining a steady money growth rate. Nope. A good economy is achieved by the rarely obtained tight monetary policy and loose fiscal policy with the fiscal policy aimed at incentives to produce rather than incentives to spend. Such a mix achieves a true zero rate of inflation rather than the escapist's disinflation or delusionist's deflation.

To: Ahda who wrote (161)	11/21/2002 4:42:56 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 621

Darleen, Uncle Al KBE has done more than tinker with rates! He has done a world champion cut in rates. Don't you think that's a good thing? 'Tinkering' suggests that changing interest rates is a pointless thing to do. A lot of people seem to hang on every word and spend a lot of effort pondering interest rate moves and what effect that will have. I know interest rates have an effect on what I do - when he lowered rates, I cut my borrowing. Yes, I know that probably doesn't make sense at first glance, but it did then and in hindsight it still does. When he starts increasing rates, I'll probably invest my money and borrow a big bunch. Mqurice