Re: Interest Rates, Inflation, Exchange Rates and Credit in Bull And Bear Markets

[Chris Niggle <niggle@xxxxxxxxxxxxxx>]

Yes, I should have read your post more carefully.  Sorry.  Chris

Alan G. Isaac wrote:

> Chris,
> You forgot to read me post before responding.
> As Is said: ``The point made by some
> structuralists---that higher interest rates work
> as a negative supply shock---is quite different:
> it is not a source of sustained inflation.''
> Sheesh. You might want to take a look at my
> article as well.
> Alan
>
> On Fri, 1 Dec 2000, Chris Niggle wrote:
> > Since interest rates are a cost of production, higher rates could
> > lead to "cost push" inflation.  Second, the CPI calculation includes
> > the cost of housing, which includes the interest rate cost of
> > servicing mortgages.  See Randy Wray and Papadimitriou's Levy
> > Institute publications on inflation.