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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (1525)	4/5/1999 3:57:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 1722

Mike, >>How does that relate to Graham and Dodd? It doesn't. We started discussing Austrian economics and ended up in a theoretical discussion about deflation of two different types. The discussion isn't about present circumstances. 1. deflation related to credit contraction as in the 30s. 2. deflation related to productivity enhancements as in parts of the 19th century. Murray Rothbard stated that the money supply need not grow at all for an economy to function well. Message 8700960 If MR is correct, I am now curious as a theoretical exercise about: Whether nominal wages would fall too? If so, how falling nominal wages would effect the paying back of principal loan balances after time? Could it result in negative nominal interest rates and if so wouldn't that throw all lending for a loop? As one contributor asked "why lend, put it under the mattress". Wayne