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To: Terry Whitman who wrote (22373)2/28/1999 10:41:00 AM
From: Bonnie Bear  Respond to of 86076
 
The fed models use commodity and product deflation to offset service inflation...sonner or later the commodity deflation should show up as higher unemployment and cause the service inflation to subside. I sure don't see it happening, though.
Yardeni's model shows this happening by 3rd quarter of this year.