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To: Mark Oliver who wrote (7085)10/7/1998 12:23:00 PM
From: Katherine Derbyshire  Read Replies (3) | Respond to of 10921
 
A weaker dollar might make US equipment companies more competitive, but right now no one's buying equipment at all, from anyone. A weaker dollar won't change a "don't build" decision.

I'm not a macroeconomist, but reduced interest rates do tend to weaken a nation's currency.

Decitrocity is not in my OED.

Katherine



To: Mark Oliver who wrote (7085)10/9/1998 7:53:00 AM
From: Mason Barge  Respond to of 10921
 
<<Is the falling dollar good or bad?>>

Normally overall beneficial for industrial growth. Currency value is tied (among about fifty factors) to relative financing costs for both manufacturer and consumer, but unfortunately also tends to occur because of recessionary pressure. Moneterists see it as a macroeconomic stimulus. Mostly however it is only a partial solution to a problem, but since we already know about the problem, it should be seen as positive.

We need a capital rate cut in this country (i.e. Fed overnight rate to 4%, and soon). We have gotten overconfident due to flow of overseas money into dollar-denominated debt securities.