I guess they must be having same problem than most Western economists. They believe that they can fix everything through financial means. In this case, through currency exchange rates. Same happens in US economy now. They seem shocked because although US dollar falls, trade defiits falls if economy declines, but trade deficit raises when economy rises again.
Deficits or surplus are mostly related to economic structure, the way one country organizes its economy. Exchange rates play a minor role. Never in the history a big economy such as NZ or USA turned from deficit to surplus just letting their currency fall. An example nowadays: Downside of U.S. Economic Recovery Is Swelling of Trade Gap http://www.bloomberg.com/apps/news?pid=20601087&sid=aHdb4Xas.kew&pos=2 Peae and best wishes. Xi On Nov 13, 6:09 am, "Sumerian.." <[email protected]> wrote: > It looks that the Bank Of Sick England forgot to reduce the New Zealand > dollar. The nation is considered developed but poor in reality. > S1000+ > Dollar dips after Key's currency comments > > The New Zealand dollar dipped slightly this > afternoon after international news agencies reported Prime Minister > John Key's long held concerns about the strength of the local currency. > Reuters > said that Mr Key expressed concerned about the dollar's impact on > exports while being interviewed on a business television programme. > "There > is that concern where we end with a position where we choke off that > growth in exports that we wanted to see in terms of getting a balanced > recovery," Mr Key told CNBC on the sidelines of the Asia Pacific > Economic Cooperation (Apec) forum meeting in Singapore. > The dollar had been trading at around US73.35c prior to the comments and > dipped to a recent low of US73.13c shortly afterwards. > It was not apparent if the movement was related to the reports.The dollar was > trading as high as US76c in October and has since been bouncing around in > that area. > Mr > Key and his Finance Minister Bill English have often expressed concern > about the value of the dollar and its effects on exporters as well as > lowering the cost of consumer imports.Both have also said that much of the > strength of the local currency is in a large part caused by the weakness of > the US dollar. > > ======= > S1000+ > ======= --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
