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Re: Gentilmen, start your printing presses
If you are an exporter and your currency rises relative to the currency of your competitors, you cut your prices. ( This is not rocket science. )Originally posted by Mega View Post
A rising currency has HUGE benefits to an economy: a.) domestic assets are worth more; b.) foreign investment in your country increases; c.) import prices fall and inflation vanishes; d.) interest rates decline; e.) the cost of living declines; f.) planning becomes possible; g.) debt including foreign debt becomes easier to service and retire; h.) confidence is restored; i.) people begin to invest and save; j.) the domestic economy grows and jobs are created; k.) people create their own jobs and government shrinks; l.) as prices fall, efficiency and productivity increase.
The benefits of a de-valued currency are fleeting and an illusion. Keynes was 100% wrong.Last edited by Starving Steve; August 29, 2011, 10:30 PM.
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