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Home‘Beggar Thy Neighbor’ Leads to Currency Wars
Posted by Larry Doyle on February 14th, 2013 6:56 AM |
The United States still has an official policy of pursuing a strong dollar, right?
Yes, right, and if you were to believe that, might I interest you in a bridge in Brooklyn?
The simple fact is that five years into our economic crisis, the major economic centers of the world, those being the USA, the EU, and now Japan are all employing the same central bank policy to support their economies. This policy of quantitative easing is an attempt to accomplish a combination of the following, with different emphasis depending on the region: (more…)
Institute of International Finance Showcases ‘Prisoners’ Dilemma’
Posted by Larry Doyle on October 11th, 2010 7:08 AM |
I first highlighted the quandary known as the ‘Prisoners’ Dilemma’ in January 2009. I have written a dozen separate commentaries on this economic ‘game’ over the last twenty-two months. Well, while this economic dilemma can be played out between two nations or amongst a wide array, the fact is the stakes of increasing protectionist policies and economic gamesmanship are rising. As aggregate private sector global demand for goods and services continues to decline, global governments are looking to jockey their currency values lower in order to capture a larger share of the international trade pie. While the jawboning in Washington is increasing, rest assured the jockeying overseas is just as fierce. Let’s review the thoughts of a neutral arbiter on this topic. The Institute of International Finance recently weighed in on this issue and wrote,
IIF Calls for Renewed Global Coordination to Resolve Critical Economic Issues. Urgent Actions Needed to Counter Unilateral Moves. (more…)
