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


To: c.hinton who wrote (263029)4/29/2008 3:42:59 PM
From: TimF  Read Replies (1) | Respond to of 281500
 
and you seemed to have failed to grasp the idea that income in the long run keeps up with inflation while the fixed monthly payments remain constant and therefor relatively lighter.

No, I did not miss that, and all my responses where cognizant of that fact.

ps the fed make the policy so what they believe becomes economic policy reality

What they believe influences economic reality, sometimes to a very large degree, but it doesn't automatically or inevitably become economic reality. In fact it can be quite the opposite. If they think inflation is no problem, and they go to an easy money policy, than they can make inflation in to a problem.