At 05:15 PM 10/15/00 -0400, Doug wrote:
Coordinated interest rate cuts as a reaction to a panic would leave
cross-national differences unchanged, so the currency impact could be
minimized. And in a panic, CBers and traders would forget about inflation
and worry about keeping everything afloat.
Jim Devine wrote:
If the Fed decides to pump up asset markets (with lower interest
rates), it not only encourages the dreaded inflation -- still a
major nightmare for the bankers and much of Wall Street, especially
with recent oil price-hikes -- but also spurs a steeper fall in the
dollar.
