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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Lee who wrote (678)	9/18/1998 9:36:00 PM
From: Derrick P.	Read Replies (1) \| Respond to of 3536

Lee, I think printing money and devaluations will increase domestic demand. Taken to an extreme, as in Russia, the devaluations and threat of inflation have induced the people to strip the stores of all goods. They know that the prices of these goods will go up so that they may not even be affordable later. These goods almost become currency or investments as they appreciate in value relative to the state currency. The goods can also be used in barter. Hopefully other nations will not take it to such an extreme. Some way needs to be found to increase consumption, as it is the perfect answer for over capacity. It sure would be a great ironic tragedy to have so many people thrown into poverty due to this crisis, where the root cause was over production. Derrick