Sense on Cents

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…)