Thursday, July 12, 2012

"Widespread currency manipulation,....."


".......................... mainly in developing

and newly industrialized economies, is the most important

development of the past decade in international fi nancial

markets. In an attempt to hold down the values of their

currencies, governments are distorting capital fl ows by around

$1.5 trillion per year. Th e result is a net drain on aggregate

demand in the United States and the euro area by an amount

roughly equal to the large output gaps in the United States

and the euro area. In other words, millions more Americans

and Europeans would be employed if other countries did not

manipulate their currencies and instead achieved sustainable

growth through higher domestic demand."

busy bee gagnon