ps. thanks for taking pity on my uneducated, frustrated self ----- Original Message ----- From: Doug Henwood <dhenwood at panix.com> To: <lbo-talk at lists.panix.com> Sent: Monday, June 17, 2002 1:00 PM Subject: Re: God-ness this stuff gives me a headache.
> pms wrote:
>
> >What does he mean that the 5% rise in the Euro adds .50 tightening?
>
> From the European point of view higher euro = more expensive (and
> therefore lower) exports = slower growth. Add to that higher euro =
> cheaper (and therefore more) imports) and you also have slower
> growth, since imports are a subtraction from GDP. [GDP = consumption
> + investment + government + net exports, where net exports = exports
> - imports].
>
> Doug
>