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To: Freedom Fighter who wrote (500)	10/25/1998 5:48:00 PM
From: Fredman	Respond to of 4691

No, i wouldn't go so far as to say Inflation is DEAD.<eom>

To: Freedom Fighter who wrote (500)	10/26/1998 9:53:00 AM
From: Robert Douglas	Respond to of 4691

Thread, Re: Inflation, franchise. Is inflation dead? Only if the laws of supply and demand have been repealed. We have however, entered a period where inflation is being contained by free markets. As long as these markets are in control, we will never experience the type of inflation that plagued us in the 70s and 80s. If however, government and politicians tie the hands of the markets, then you might see inflation's rise from the grave. Having said this, I don't mean to suggest that the markets suppression of inflation will be painless. If imbalances begin to arise in the economy, or governments act foolishly, then markets will respond and force changes to be made. The “medicine” to prevent inflation might be higher interest rates and changes in the currency level to stop inflation from becoming ingrained in the economy. What is a franchise? Great question! I have always felt that the word franchise meant something that could not be readily reproduced by a business without huge expenditures or money and time. A franchise is the ultimate barrier to entry and the most valuable form of goodwill. Franchises have been known to fail however and there is no law to say that today's franchise will be tomorrow's. -Robert

To: Freedom Fighter who wrote (500)	10/28/1998 7:35:00 PM
From: Harry Landsiedel	Respond to of 4691

Wayne Crimi. Re: "Is Inflation Dead?" Inflation is clearly dormant for many reasons but one that makes the most sense to me is the technology boom which is creating a powerful force of disinflation. In this regard I have seen this current era compared to the 1870's-1890's where prices dropped as the U.S. industrialized. For an interesting POV on the causes of the '70's inflation read Harry Dent's book The Roaring 2000's. He makes the case (better than I can) that the '70's inflation paralleled the entry of the Baby Boomers into the labor force. The country had to investment spend (create deficits) to train this new labor force and consequently we had to sacrifice productivity in the short run. Now this group is reaching the prime of their work life and we are reaping the benefits. I am sure there are other factors, and politicians will continue to be tempted to inflate the currency, but these factors may make inflation stay low for a long time to come. HL