Japanese Car Zone - View Single Post - Federal Reserve cuts interest rates, stock soar

notic · 09-20-2007, 09:02 PM

i just wanted to add to my previous post. if the high canadian dollar costs manufacturing jobs, it may be theoretically good for fighting inflation. lower inflation can be achieved through increased unemployment and slow downs in growth. i'm not sure what the output gap in canada is right now, but if it is in the positive, the economic slow down may help stifle some of that inflation brought on by the crazy housing market and increased materials costs. who knows, maybe this will work in our favour.

09-20-2007, 09:02 PM	#8
notic Advocate Join Date: Oct 2005 Location: Vancouver, B.C. Posts: 841 Thanks: 198 Thanked 139 Times in 84 Posts	Re: Federal Reserve cuts interest rates, stock soar i just wanted to add to my previous post. if the high canadian dollar costs manufacturing jobs, it may be theoretically good for fighting inflation. lower inflation can be achieved through increased unemployment and slow downs in growth. i'm not sure what the output gap in canada is right now, but if it is in the positive, the economic slow down may help stifle some of that inflation brought on by the crazy housing market and increased materials costs. who knows, maybe this will work in our favour.