Fed

[James Devine]

At 04:37 PM 9/29/98 -0400, you wrote:
>So the Fed lowered the fed funds rate by a 1/4 point, the most minimal
>action they could have taken. Are they trying to promote a global
>deflation, or what?
>
supposedly (according to some mouth on NPR news this a.m.), the cut in
rates is supposed to help raise the Yen and also prevent China from
devaluing. How does this work in theory? It seems unlikely in practice. I
can see the first part, but doesn't a higher Yen hurt Japan's exports,
which seems the wrong thing to do at this point? 

Jim Devine jdevine at popmail.lmu.edu &
http://clawww.lmu.edu/Departments/ECON/jdevine.html