Money creation

Michael Perelman michael at
Mon Apr 10 10:15:38 PDT 2000

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 Chico, CA 95929 530-898-5321 fax 530-898-5901

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