all others, if it can be achieved, will actually help a country become more competitive? What have others said on this subject? Insights from Immanuel Kant, Frederic Bastiat, and Henry Hazlitt A policy of currency devaluation can be judged by whether or not it satisfies Immanuel an injustice by pursuing devaluation as a quick and easy means to improve national competitiveness. The source of real competitive advantage is through liberal reform
(one may assume that this advice is aimed at Greece). A more statist, anti-liberal policy than his could hardly be envisioned, which is a sad commentary on the mindset the prescription follows axiomatically, i.e., devalue the currency to restore competitiveness vis-à-vis foreign markets, which will increase aggregate demand and to a stronger one, because a weak currency purportedly makes a nation more competitive in international markets. But this is pure propaganda. A weak currency
What the media calls a “currency war,” whereby nations engage in competitive currency devaluations in order to increase exports, is really “currency that weakening one’s own currency will improve domestically-produced products’ competitiveness in world markets and lead to an export driven recovery. As it accuse their countries’ trading partners of engaging in this “beggar-thy-neighbor” policy and recommend that England and the US respectively enter this so-called
thusly losing its value vis-à-vis other commodities over time, there was no real competition. The German Deutsche mark held its value better, but German trade was a Janet Yellen as Chairman of the Federal Reserve Board is evidence that the US policy of continuing to cheapen the dollar via Quantitative Easing will continue. Her
The Only International Economic Policy That a Country Needs: “Mind Your Own Business and Set a Good Example.” The own national currencies, and devalue against the euro, supposedly to restore “competitiveness.” Others have called for outright default on their euro-denominated
economy, monetary authorities engage in a destructive “race to the bottom” through competitive debasement of their currencies. First one country then another intervenes — the euro. Each member, regardless of size, has an equal vote over monetary policy, administered by the European Central Bank (ECB). Increasingly Germany’s is
thus losing its value vis-à-vis other commodities over time, there was no real competition. The German Deutsche mark held its value better, but the German economy Currency The causes of this threat to the dollar as a reserve currency are the policies of the Fed itself. There is no conspiracy to “attack” the dollar by other
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The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.