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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (14765)	6/1/2004 1:09:28 PM
From: Silver Super Bull	Respond to of 110194

RW, RE: "They have the printing presses going (instead of tightening to cool things off)" I just read a very interesting passage in my macroeconomics textbook, authored by Abel and Bernanke. On page 541, under the heading "Lags in the Effects of Monetary Policy": "The price level remains essentially unaffected for more than a year after the monetary policy action! Only after this long delay does the tightening of monetary policy cause prices to begin to fall." This line of thinking probably explains why it is considered very risky to fall behind the inflation curve. DB