On Sat, 11 Jun 2005 17:34:04 GMT, james wrote:

On Wed, 08 Jun 2005 08:59:32 -0400, Dave Hall
wrote:

Tariffs have nothing to do with inflation directly. But it can
stimulate it by initiating price increases.
******

Tariffs if used on short term basis will have small effects on
inflation. When used as a part of long term policy and become over
bearing then they can become a direct cause and effect to inflation.
Producers can absorb costs spikes that are one time occuring or short
term. If they remain long term then the producer must pass the cost of
tariffs on to the consumer in higher prices. Thus infaltion.


Thank you for explaining it in a far more comprehensive way than I
did.

Tariff are a cause, not an effect.

Dave
"Sandbagger"