the effect of large devaluation is a de facto repatriation of currency
and as a potential outcome devaluation threats
imply a possible " penalty " to holding that currency
fear of a run out
MNCs thrive obviously on capital flows ,,,,,,,moving funds across borders
to mediate their domination of cross border trad and direct investment
not to mention playing the various hot money cross border
cross currency and cross security games
if a CB will act decisively in the interest of a majority job class
the global capitalists aren't safe playing in that currency its denominated securities
even its cross border trade
the use and effectiveness of this weapon is obvious
if internal class struggle requires a flexible exchange rate to avoid cyclical BOP crises
then control of the CB by the job class is an obvious strategic objective
british capital controled labor governments from the mid 60's thru the mid 70's
with well time BOP crises
after breton woods that became impossible
but the same result was achieved by other means
once the CB ....the BOL got the hang of flex policy
and the class struggle resumed
first
by simple wage hike escape
thru price spirals accomodated by the credit system
then by an independent LOB using its dfuardian powers to
stop further spirals
much of todays conventional wisdom
stems from the wrong reading of that early post bretton woods era
and obviously not only Thatcherism and Reaganism but evern the crisis of 2008
were the product of that interval
1973-1979
