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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: George K. who wrote (51993)6/3/2006 10:39:01 AM
From: Chispas  Respond to of 116555
 
"These are the sure-fire signs of an economy ready to go into recession"
billcara.com



To: George K. who wrote (51993)6/4/2006 10:07:43 AM
From: Moominoid  Respond to of 116555
 
But cash in standard economic theory means 0% money.... that is the part of Krugman's article I didn't get. An increase the demand for money would push interest rates up because people would sell bonds to get cash. Rising interest rates are certainly one cause of recession. But the Central Bank pushing them up to fight inflation is probably a major cause of recession today. Not some exogenous increase in cash demand from the private sector.