Re: Inflation (Finance Capital uber alles)

["Niggle, Christopher" <Christopher_Niggle@xxxxxxxxxxxx>]

 Your intuition is correct.  chris
-----Original Message-----
From: Helmet4000@xxxxxxx
To: pkt@xxxxxxxxxxxxxxxx
Sent: 12/25/01 2:25 PM
Subject: Inflation (Finance Capital uber alles)

Dear PKT,

As I have been reading Palley's (1998), Plenty of Nothing, I have been
intrigued by his discussion of how the Fed defines inflation as enemy
number one. He mentions how the Fed sees no reason to raise interest
rates when profit incomes are growing, but when labor incomes are
growing, there is every need to do so.  He discusses how inflation has
been defined as more important than unemployment and whether or not this
is partially attributable to associating stagnation with inflation in
the 1970s.

I think his position sounds reasonable, is this how it really is?  Or am
I just unenlightened?

Thanks,
Tom

http://www.hometown.aol.com/helmet4000