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#254ithink– that is an interesting chart, but I’m not sure you recognize the full meaning of it. Part of the correction in the early 90s was due to nominal prices falling, but another component of the correction was due to prices staying flat for several years while incomes caught up. In the end, it doesn’t matter which way it happens, the value is eroded just the same. If your point is that people here may be waiting a long time before prices arrive at their 1997 equivalent, that may be true. But I do not think that chart argues against a large correction in prices relative to incomes on the whole.
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