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

To: Shane M who wrote (41255)	12/29/1998 8:32:00 AM
From: Mike M2	Read Replies (1) \| Respond to of 132070

Shane, AG discounts the numbers which show we are not in a new era to justify his bubble economy. Mike

To: Shane M who wrote (41255)	12/29/1998 11:58:00 AM
From: Jess Beltz	Respond to of 132070

Shane, i don't really know exactly what variables The Chairman looks at, except that a concept that looms large in his decision making is the lags involved between the first perceptions of coming inflation, its actual onset, and the time needed for policy implementations to achieve measured success against it. Those lags can be quite long, and lead Greenspan and the Fed in the direction of acting quickly and preemptively in heading off inflation. Again, I don't know what variables he thinks have predictive power, but i (and the rest of the known economic and financial world) wouldn't mind knowing. Suffice it to say that for the moment, inflation is in check, and the biggest determinant in the rise of inflation, i.e. energy prices are low and probably going lower in the near term. That leaves the low-rate benign monetary policy that the market loves in place for the time being, and (i think) removes any real threat to the lofty valuations of many equities. jess.