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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: dougjn who wrote (8481)	10/5/1998 9:53:00 PM
From: Bernard Levy	Read Replies (1) \| Respond to of 12468

Hi Doug: I am not sure that studying pre-WWII deflationary recessions will help you that much since: a) government spending was quite small during that period, so that government could not impact demand as significantly as today (in essence, counter-cyclical policies such as unemployment insurance are hard-wired into the system), and b) economic understanding of deflation was not as good as today-- both monetarists and Keynesian economists have now ready-made prescriptions for a deflationary environment-- it is just unfortunate the Japanese have in effect applied the opposite of these prescriptions when they raised taxes last year. Best regards, Bernard Levy