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  1. Path: sparky!uunet!zaphod.mps.ohio-state.edu!pitt.edu!wbdst
  2. From: wbdst+@pitt.edu (William B Dwinnell)
  3. Newsgroups: sci.econ
  4. Subject: Re: Inflation
  5. Message-ID: <2512@blue.cis.pitt.edu>
  6. Date: 26 Jan 93 02:29:57 GMT
  7. References: <1993Jan19.213541.29797@ttinews.tti.com> <2168@blue.cis.pitt.edu> <38385@uflorida.cis.ufl.edu>
  8. Sender: news+@pitt.edu
  9. Organization: University of Pittsburgh
  10. Lines: 8
  11.  
  12.  
  13. Jim Hranicky: Much of what you wrote makes sense, except the part about
  14. "Inflation also causes interest rates to drop." It would seem that
  15. a lender, seeing the drop in the interest he's getting back, would be
  16. increasing the rate at which he charges interest. Likewise, the
  17. borroweer would be willing to pay more interest in the future, since,
  18. in the future, that money will be worth less than it would without
  19. inflation.,..
  20.