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Date:      Wed, 24 May 2000 22:34:03 -0400
From:      Tim Vanderhoek <vanderh@ecf.utoronto.ca>
To:        David Schwartz <davids@webmaster.com>
Cc:        Terry Lambert <tlambert@primenet.com>, Doug Barton <Doug@gorean.org>, Brett Glass <brett@lariat.org>, chat@FreeBSD.org
Subject:   Re: The Ethics of Free Software
Message-ID:  <20000524223403.B80883@mad>
In-Reply-To: <000001bfc5e7$6f024440$021d85d1@youwant.to>; from David Schwartz on Wed, May 24, 2000 at 06:20:37PM -0700
References:  <200005242353.QAA08949@usr05.primenet.com> <000001bfc5e7$6f024440$021d85d1@youwant.to>

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On Wed, May 24, 2000 at 06:20:37PM -0700, David Schwartz wrote:
> 
>       The term "running to hot" means that money is changing hands
> very rapidly.  The risk is allegedly that this will result in
> inflation. Raising the interest rate slows this process.

Moreover, that investment is too high.  If you want to look at it from
a meta level, it means that you are below the natural unemployment
level.  This in turn can sometimes cause a recesion because the
unemployment level must eventually return to its natural level (or
higher) and when it does so, it can cause people to expect a
recession.  Once people, especially investors, expect a recession, it
occurs.

Money's velocity is a large factor in causing the unemployment level
to drop too low, so it's not an unfair statement.  However, I suspect money
velocity tends to vary more between different economies than it varies
between recession and boom.

One can try to argue that some of the psychology has changed as sources of
investment change.  But really...


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