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To: Chuzzlewit who wrote (24477)12/8/1997 4:36:00 PM
From: Bearded One  Read Replies (1) | Respond to of 176388
 
Re: wage inflation-- Not my assumptions, but the assumptions of a senior economist at Moodys:
moodys.com

Two lines from the article:

"Accentuating the inflation risks implicit to the latest stage of labor market tightening has been the fastest wage growth in nearly
eight years. "

"The faster growth of wages adds to inflation risks both by increasing labor costs (which effectively impedes the growth of production) and by funding a livelier pace of household expenditures."

As for cost to potential customers to defer buying, well, don't costs always go down in computers? Seems to me if costs are rising in non-computer products and lowering in computer products, people will purchase non-computer products first and wait on the computer products.

And as for a steep aggregate demand curve, I made no assumptions, just noted the simple possibility.