Quote:
Originally posted by Mulhollanddose
Inflation is a natural phenomena in a growing economy, naturally.
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True, when it is caused by capacity contraints and wage inflation - but in this case it is caused by high oil prices (which aren't growth) and pricing for materials to rebuild the South (which the govt is paying for to some extent, and is also not really "growth"). Unfortunately, in this case inflation not cause by growth is going to lead to lower growth:
Quote:
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Greenspan did not quantify how much of a slowdown will occur, but private economists are forecasting that the hit from Katrina and Rita could shave as much as a full percentage point from economic growth in the final six months of this year.
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http://www.businessweek.com/ap/financialnews/D8DAEPB01.htm?campaign_id=apn_home_down&chan=db
(the yahoo link didn't work for me).