[PEN-L:29416] RE: Re: Re: deflation

["Devine, James" <jdevine@xxxxxxx>]

Title: RE: [PEN-L:29415] Re: Re: deflation

it's not true deflation unless prices _in general_ are falling, though the fall in prices in crucial sectors can indicate that true deflation is in the offing. A really deadly deflation would involve falling money wages and falling housing prices.

Jim Devine jdevine@xxxxxxx &  http://bellarmine.lmu.edu/~jdevine

> -----Original Message-----
> From: Michael Perelman [mailto:michael@xxxxxxxxxxxxxxxxx]
> Sent: Tuesday, August 13, 2002 3:15 PM
> To: pen-l@xxxxxxxxxxxxxxxxxxx
> Subject: [PEN-L:29415] Re: Re: deflation
>
>
> The article is not theoretical.  It merely describes the
> sectors which are
> experiencing falling prices.  It mentions some with rising
> prices -- such
> as ciggies, lawyers, ....  Not much depth, but the fact that the paper
> even broached the subject was interesting, especially on the
> day that W.
> is talking up the economy.
>
> On Tue, Aug 13, 2002 at 03:01:19PM -0700, Sabri Oncu wrote:
> > Michael wrote:
> >
> > > Today the Wall Street Journal had a little article
> > > on deflation, but they placed it in the section geared
> > > to consumers rather than investors.
> >
> > Michael,
> >
> > I don't have  access to WSJ so could you please summarize what
> > they say?
> >
> > Best,
> > Sabri
> >
>
> --
> Michael Perelman
> Economics Department
> California State University
> Chico, CA 95929
>
> Tel. 530-898-5321
> E-Mail michael@xxxxxxxxxxxxxxxxx
>