Re: Interest Rates, Inflation, Exchange Rates and Credit inBull And Bear Ma...

["Alan G. Isaac" <aisaac@xxxxxxxxxxxx>]

On Mon, 4 Dec 2000, schulte-baeuminghaus wrote:
> It's a dangerous game to call other people "silly."

James,

I regret that my impatience led me to this
word choice---which I applied to the whole
discussion and not to any person---but I found
your claim about the extant evidence unfathomable.
It simply does not match anything I have looked at.
I therefore reminded you about the actual evidence
by suggesting a very simple exercise.  I have
found variations on it to be quite robust.
Tell me, have you actually *looked* at these data?

> Those who maintain that, in the modern, post-1969 economy, an
> increase in interest rates is the way to deal with the threat or
> actuality of inflation may be likened to people on the Titanic who,
> despite the availability of telescopes and a clear night and a calm
> sea, see no icebergs anywhere.

Please supply counter evidence rather than
untethered rhetoric.

Also, please note that I have proposed no
policy in my posts.  Specifically, at no
point have I suggested that the evidence
that we can use high interest rates to
lower inflation implies a corollary that
we should so use them.

Alan