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To: Patrick Slevin who wrote (15762)	10/28/1998 10:50:00 AM
From: Will Lyons	Read Replies (1) \| Respond to of 17305

Unfortunately the monetarists have been dominating policy makers all around, the Fed, the IMF, et al. Spearheaded by 'its your money' and similar anti fiscal policy propaganda we have neglected the most powerful tool to control the cycle. Instead of high interest rates we should have raised taxes , and not be cutting the budget of sinking economies. And if the economy starts to contract beyond a critical level, then lowering the interest rate will not encourage investment. During the depression the rate got close to zero but only the deficit spending during WWII got us out of the depression. Unless demand for final products can be sustained, cutting rates is like pushing on a wet noodle!