Re: Polemic/never land

[Doug Henwood <dhenwood@xxxxxxxxx>]

1) In an unquoted response to my dollar polemic, Randy Wray argued that
the falling dollar will improve US exports, and that our wages are low
relative to Germany and Japan. Why is it the axis powers remain
formidable manufacturers despite appreciating currencies and rising real
wages, but the US has to resort to dollar depreciation and falling real
wages in an effort to stay competitive?

2) Stupidity driving the Fed? I'm always deeply suspicious of arguments
that what used to be called the ruling class doesn't understand its own
interests as well as a bunch of marginalized critics. Is it stupidity or
self-interest that drives bondholders to demand slower growth and higher
unemployment?

Doug

Doug Henwood [dhenwood@xxxxxxxxx]
Left Business Observer
212-874-4020 (voice)
212-874-3137 (fax)


On Thu, 7 Jul 1994, Randy Wray wrote:

> In reply: yes, Jamie and EPI helped to postpone the inevitable; short
> term rates will go up at the next meeting in August. There is no
> conspiracy, just stupidity, that is driving the Fed. Randy