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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (35031)	11/1/1998 5:53:00 PM
From: Tommaso	Read Replies (1) \| Respond to of 132070

Thanks for the links, which I will explore when I have time. I am a complete amateur (as I suppose I need not admit) in economics, money, and finance. I do, however, have a pretty large library in these subjects because years ago a local academic economist got a job in Washington and simply abandoned his professional library. It was quite a bargain to get all these books with "money" in the title absolutely free. Possibly the best use I have is for one that is titled Money, which I use to keep spare cash inside. It's easy to remember where the money is that way. The problem with economics is that a dozen or more important determinants are simultaneously affecting one another, so that it's hard to know wich is cause and which is effect. For a while I was convinced Friedmanite monetarist, learning only the hard way that when productivity outruns money creation you can have stable prices and even deflation with quite high figures for M1, M2, M3, etc. I believe that the Fed is truly trying to do what's best for the United States economy, and for other countries,too. I think they are afraid of imposing discipline lest it lead to a 1930s-style contraction. With no immediate threat of inflation in wages and prices, and with actual decline in commodity prices, however, they seem to me too willing to keep making things easy on banks that have foolishly (yet one more time) lent too much money.