|
|
Article: Get smart about inflation. (interest rates and the economy)
- Article from:
- The Washington Monthly
- Article date:
- May 1, 1994
- Author:
CopyrightCOPYRIGHT 1994 Washington Monthly Company. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
For a moment this spring, madness was rampant. Whitewater crowded health care and education off the front pages; Barry Goldwater told the Republicans to get off Clinton's back; John Bobbitt announced he's marrying again. Most important, the Federal Reserve and Wall Street went bananas as rising interest rates sent the stock and bond markets on a roller coaster ride."Dow Falls 72 Points Amid Market Fears" screamed a March 30 headline in the Los Angeles Times. The subhead? "Seventh drop in eight days puts average 300 below where it stood two weeks ago. Investors are worried by interest rates and political turmoil."
This market madness is especially perplexing given ...