Top Eurobank prepares for 'global economic collapse'... Nov 20, 2009
" The reason this is about to turn into a depression is that governments can no longer expand credit markets hence they can no longer induce inflation. Incidentally, even assuming we could induce a further expansion in credit markets, the multiplier effect of each unit of currency on the overall economy is today neutral. This is because inflation is a dynamic that is exponential in nature. http://research.stlouisfed.org/fred2/series/MULT As to why gold has been rising in price, it is not... (The Drudge Report)
Dollar depreciation: Denial or acceptance Oct 23, 2009
The dollar s slide is complicating life for countries with floating exchange rates ... Now that stockmarkets and economies have bounced back, dollar weakness has returned, causing a headache for countries with floating exchange rates (see chart). (The Economist)
IMF: Banks Must Pay More to Ensure System Oct 3, 2009
Tobin said the tax would help limit instability arising from a world of floating exchange rates. "The very simple idea of putting a tax on transactions won't work for many technical reasons," said Strauss-Kahn. (CBS News -- World)
transcript of Press Briefing on the International Monetary Fund's World Economic Outlook by Olivier Blanchard, IMF Economic Counsellor and Director of the Research Department Oct 2, 2009
QUESTION: I just want to pick up on two of the points you mentioned of potential difficulty in the recovery from the report, one on global imbalances where you point to the need to eventually move to floating exchange rates to make that more effective. Presumably, you are referring to China there. (IMF News)
Tanner decries 'chronic weaknesses' in economy Sep 4, 2009
Mr Tanner said current account deficits were less troubling under floating exchange rates ''but they still matter, particularly if they are substantial and entrenched. It does mean that [our economy is] vulnerable to external shocks and that is precisely what has happened,'' he said. (Sydney Morning Herald -- Business)
Buttonwood: Caveat creditor Jul 3, 2009
The new era is one in which governments are using floating exchange rates, near-zero interest rates and vast fiscal deficits to protect their economies. None of this is good news for creditors, who will surely not put up with the situation for long. The actions they take to protect their portfolios demanding higher bond yields, pushing for fixed exchange rates will define the next economic system. (The Economist)
Carney Still Watching the Canadian Dollar `Closely' After Recent Increase Jun 19, 2009
Carney last voiced his concern to reporters June 11 in Montreal, describing the dollars rise as something that hasnt happened in 50 years of floating exchange rates. The dollar has lost 3. (Bloomberg -- Canada)
Carney May Be Pressed Into Buying Bonds as Canadian Dollar Batters Economy Jun 16, 2009
Carney voiced his concern to reporters June 11, describing the dollars rise as something that hasnt happened in 50 years of floating exchange rates, noting it will have an impact that offsets some important impacts to come, and saying the central bank is going to take notice and we are following the situation closely. . (Bloomberg)
The Global Economic and Financial Outlook and Challenges for Emerging Economies, Keynote Speech by Mr. Takatoshi Kato, Deputy Managing Director, IMF, 21st Meeting of the Central Bank Governors’ Club of the Central Asia, Black Sea Region, and Balkan Countries, Kazakhstan Jun 2, 2009
There may be some scope for allowing the exchange rate to depreciate in cases of floating exchange rates or adjustable peg regimes. Such adjustment may help exporters, and be especially appropriate where a country has relied on commodity exports and has seen large price declines. (IMF News)
IMF lost on the high seas Apr 28, 2009
A world financial system, based on reserve currencies and floating exchange rates, faces unparalleled instability. The sky is the limit when it comes to credit creation in reserve currency countries. (Asia Times Online)
China wants IMF unit to replace dollar as a reserve Mar 24, 2009
Jim O'Neill, chief economist at Goldman Sachs in London, said the dollar-based system of floating exchange rates had demonstrated great flexibility down the years. "But over time, as the world is taken off the steroids of the overleveraged U.S. consumer, you can't have the same dollar dependence as we have had. But who can provide it? And the answer is, if it functioned properly, maybe the SDR could have a much bigger role," O'Neill said. (International Herald Tribune)
INSIDE EUROPE: Peg or float? No easy answers for Eastern Europe Mar 10, 2009
Conventional wisdom suggests that countries are better off with floating exchange rates in times of crisis to enable them to adjust less painfully to economic shocks. Yet Brussels has strongly discouraged the Baltic states from dropping their currency pegs, despite market pressure and slumps in gross domestic product. (International Herald Tribune -- Business)
Leader: The bill that could break up Europe Mar 2, 2009
Unilateral or accelerated adoption of the euro would make far less sense for a third group of bigger countries with floating exchange rates: the Czech Republic, Hungary, Poland and Romania. None of these is ready for the tough discipline of a single currency that rules out any future devaluation. (The Economist)
Ex-communist economies: The whiff of contagion Feb 27, 2009
The paradox is that for countries with floating exchange rates, an orderly depreciation would in normal circumstances be a good way of cushioning an external shock, such as the slump in export markets now hitting the ex-communist economies ... Countries with floating exchange rates have a bit more room for manoeuvre. (The Economist)
