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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: neolib who wrote (198315)	8/27/2006 9:55:03 AM
From: jttmab	Respond to of 281500

What? So we can have radical inflation first? The fed is trying to control two variables with one lever. If inflation behaved itself on its own, we could have zero interest rates perpetually, but things don't work that way. The question was whether we are in a recession at this moment in time. If we were in a recession that in itself would keep inflation low and the Fed could lower interest rates to stimulate. Which they are not doing at the moment. "n" months from now we might be in a recession, but at the moment we're not. jttmab