Money creation

[Michael Perelman]

How much difference would a percent or two mean in an environment in which growth
is projected to being 20, 40, 100 percent per year?  Especially when every
technology company is the next Microsoft?

Brad De Long wrote:


> Over the past year, news about interest rates--at least as our
> computers using linear projections as proxies for expectations define
> news--has no effect on tech stocks. Our models that say that tech
> stock valuations should be extremely sensitive to interest rate news
> and movements worked fine up until March of 1999, and then broke
> down...
>
> Brad DeLong

--

Michael Perelman
Economics Department
California State University
michael at ecst.csuchico.edu
Chico, CA 95929
530-898-5321
fax 530-898-5901