The dollar is falling in value against many other currencies. The Canadian dollar today is approaching par. Also there will be inflation in many areas. Investors will switch from bonds to stocks. Stock markets in Canada and the U.S. are way up today and so is the price of some commodities such as oil. What is normal monetary policy? I thought Quantitative Easing was an exceptional policy that is used because of the sluggish economy in an attempt to boost the growth rate. Cheers, ken hanly
----- Original Message ---- From: Jim Devine <[email protected]> To: Progressive Economics <[email protected]> Sent: Wed, November 3, 2010 10:17:53 PM Subject: Re: [Pen-l] China and Quantitative Easing. ken hanly wrote: > Will not China and other countries that hold a lot of U.S. debt be pissed off > by a lot of QE? Surely this will make the dollars they hold less valuable. At > the same time they will make their own currencies stronger and U.S. exports >more > competitive. Shouldn't China complain that the U.S. is manipulating the value >of > their currency? why should the dollar fall in value if there's no inflation? and how does this this differ from normal monetary policy in terms of "manipulating the value of the currency"? -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
