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The ecomomy is still growing 1.7% still projected to grow in2006.

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The Economist called it a splendid way to transfer wealth from savers to borrowers. It constitutes a disincentive to save and an incentive to borrow, and, to consume, alas, to speculate. Inflation also improves the lot of corporate - and individual - borrowers by increasing their earnings and marginally eroding the value of their debts (and savings).

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