".......................... 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
