Euro sails through

[William S. Lear]

On Wed, May 6, 1998 at 17:31:43 (-0400) Doug Henwood writes:
>...
>I don't say this. I say firms with high interest costs invest less than
>those with low interest costs, but interest rates also typically rise in a
>boom and fall late in a bust, so they can move in the same direction as
>investment. I'd call the Volcker increases in interest rates offensive
>rather than defensive, intended to break labor and transform public
>expectations. It was a very successful act of class war.

This is getting onto a bit of Post Keynesian turf, but doesn't Randy
Wray argue that interest rates tend to rise on the downside of the
business cycle because people are trying to shift out of long-term
debt (i.e. liquidity preference rises)?  Or is it the downside of the
expansion??


>High tech companies are most certainly not undervalued. The crappiest
>companies are flinging off IPOs faster than you can counterfeit currency.

Bravo.

Bill