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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Olson who wrote (18323)	5/8/1998 9:43:00 AM
From: IQBAL LATIF	Respond to of 50167

I just looked at BCA referenced chart- bcapub.com 78, 87, and 93 are three years which can be termed as peak years of rate of accumulation of reserves-- all these three periods precede periods of high inflation-- in 79-80 we had inflation 10% and as high as 15% in 88-89 we saw inflation as high as 8-9% and in 93 at 7%. What I am surprise to see that the real rate of interests today are as high as 1980 when we had 15% inflation and nominal interest rates of 15%-- today rate of accumulation of reserves may be higher but in benign inflationary environment. I am sure AG will manage global liquidity in a slightly different manner then what is expected by BCA-- the underlying reasons are different.