The U.S. BLS writes >There is little accord among analysts on how quickly and by how much >growth will slow this year. Some say the Asian crisis fallout will >slash growth, with slack foreign demand dragging down both trade and >manufacturing. Others say domestic demand and stock-market-generated >wealth will keep up growth.... (Daily Labor Report, page D-1). but that "stock-market-generated wealth" is simply _paper gains_. What happens if people decide to cash in on their paper gains? Frankly, the effect of stock-market wealth on aggregate demand is pretty controversial, which suggests that it's weak, evanescent. So what doe the DLR say is the source of booming "domestic demand"? Jim Devine [EMAIL PROTECTED] & http://clawww.lmu.edu/Departments/ECON/jdevine.html "It takes a busload of faith to get by." -- Lou Reed.
