the problem is that if having more currency might push down the market Fed Funds rate below the Fed's target rate. This would mean that under current operating procedures, the Fed would sell government bonds (a contractionary monetary policy) in order to push the rate back to its target, negating the stimulative effect.
------------------------
Jim Devine jdevine@xxxxxxx & http://bellarmine.lmu.edu/~jdevine
stop the war now!
> -----Original Message-----
> From: Michael Perelman [mailto:michael@xxxxxxxxxxxxxxxxx]
> Sent: Thursday, March 27, 2003 7:35 AM
> To: pen-l@xxxxxxxxxxxxxxxxxxx
> Subject: [PEN-L:36175] Re: Iraqi inflation
>
>
> Daniel had written before about Iraq having excellent plates
> for printing
> US currency. I would like to know more about that.
>
> Of course, more currency might help the US and thereby make
> the war more
> popular after a while.
> --
> Michael Perelman
> Economics Department
> California State University
> Chico, CA 95929
>
> Tel. 530-898-5321
> E-Mail michael@xxxxxxxxxxxxxxxxx
>
>
- [PEN-L:36217] Falling perles, (continued)
- [PEN-L:36217] Falling perles, Chris Burford Fri 28 Mar 2003, 08:25 GMT
- [PEN-L:36223] Re: Falling perles, k hanly Fri 28 Mar 2003, 16:08 GMT
- [PEN-L:36225] Re: Falling perles, joanna bujes Fri 28 Mar 2003, 17:21 GMT
- [PEN-L:36179] War and the color line, Louis Proyect Thu 27 Mar 2003, 16:31 GMT
- [PEN-L:36178] RE: Re: Iraqi inflation, Devine, James Thu 27 Mar 2003, 16:19 GMT
- [PEN-L:36177] David Armstrongs Song of America, k hanly Thu 27 Mar 2003, 16:09 GMT
- [PEN-L:36176] Most recent GRU reports, k hanly Thu 27 Mar 2003, 15:42 GMT
- [PEN-L:36174] Iraqi inflation, Devine, James Thu 27 Mar 2003, 15:27 GMT
- [PEN-L:36175] Re: Iraqi inflation, Michael Perelman Thu 27 Mar 2003, 15:35 GMT