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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?


To: Lone Ranger who wrote (2568)6/9/2003 8:30:27 PM
From: Alan Bell  Read Replies (1) | Respond to of 10065
 
What are the chances that Greenspan will overreact to these disinflation concerns? After all, he didn't correctly pick up the last economic trend change and overreacted with his tightenings. This is an oscillatory system and any such system needs negative feedback to stop the extremes but it also needs to get the dampening factor right to reach stability. I am not sure Greenspan has a handle on the latter.