Thursday, February 15, 2007

The weak dollar benefits our international trade. The BLS reports that U.S. import prices declined last month while export prices rose. http://www.bls.gov/mxp

3 comments:

tommyB said...

Deborah, isn't the Fed effectively easing by the fact that M1 and M2 are increasing even if the official Fed target rate is not changed?
My limited economic understanding is that money supply control is what permits the Fed to target the Fed rate.

Deborah said...

You are absolutely right! In fact, today (Feb. 16) the Fed added three times the normal amount of money to the system. It seems that they don't want a recession. Deb

tommyB said...

Thanks for your reply. I've heard that they might be doing that in response to the sub-prime problems that are occuring.