At 02:23 PM 1/31/01 -0800, you wrote:
>I understand that. I was refering to the way the Fed manipulates the
>meaning[s]
>of the term. Surely they weren't moving interest rates like crazy because
>of the
>CPI? What's AG call it, "constructive ambiguity" or some such....?
no, they move it because of fears of wage inflation, which are seen as
encouraging consumer price inflation and/or profits, though the latter
aren't mentioned. (It wouldn't be polite.)
BTW, nowadays the Fed is ignoring the CPI. It pays attention to the price
index for personal consumption expenditures.
Jim Devine [EMAIL PROTECTED] & http://bellarmine.lmu.edu/~jdevine
