China’s Latest “Devaluation:” A Currency War in the Making?

China’s Latest “Devaluation:” A Currency War in the Making?

photo: JasonParis China’s currency has, once again, been weakening against the dollar. It is down by more than 4 percent since October, including a fall of more than one percent just last week. Writing in the New York Times, Landon Thomas, Jr. warned that “China’s decision to push the value of its currency lower has opened a new […]

China’s Latest “Devaluation:” A Currency War in the Making?

China’s currency has, once again, been weakening against the dollar. It is down by more than 4 percent since October, including a fall of more than one percent just last week. Writing in the New York Times, Landon Thomas, Jr. warned that “China’s decision to push the value of its currency lower has opened a […]

Does Putin’s Proposed Eurasian Currency Union Make Sense?

At a meeting in Kazakhstan last week,  Russian  President Vladimir Putin proposed a currency union for the members of the Eurasian Economic Union (EAEU).  Russia, Kazakhstan, Belarus, and Armenia are the current members, and Kyrgyzstan is scheduled to join later this spring. Does a common currency for the EAEU make sense? Not in economic terms, […]

MMT and External Constraints

To Fix or To Float, that is the question. MMT argues that a sovereign government that issues its own “nonconvertible” currency cannot become insolvent in terms of its own currency. It cannot be forced into involuntary default on its obligations denominated in its own currency. It can “afford” to buy anything for sale that is […]

Eurozone: Competitiveness Indicators and the Failure of Internal Devaluation

Measures of ‘international competitiveness’, for example those based on broad wage, unit labour cost and price parameters are approximations only[1].   Some are more relevant than others. The purpose of this short article is to review the progress of external account adjustment and internal devaluation in Eurozone countries Unit Labour Cost Comparison Unit labour cost-based measures […]

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