conventional wisdom

Doug Henwood dhenwood at panix.com
Wed Feb 23 09:50:51 PST 2000


Brad De Long wrote:


>It's too late. Interest rate increases today won't affect the flow
>of spending until November.

If that. We had several tightenings last year that seem not to have affected the flow of spending yet. A few quarter point snugs on the funds rate can't stop the mighty juggernaut.


> (On the other hand, they will affect the stock market today.)

That was what was at issue, I thought. I wonder what a 15% market decline would do to electoral politics.

Doug



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