The US, Japan, Britain, as well as the Swiss, Scandies, and a string of states
around the world, are actively driving down their currencies or imposing
caps.
They are tearing up the script, embracing the new creed of nominal GDP
targeting (NGDP), a licence for yet more radical action.
The side-effects of this currency warfare -- or "beggar-thy-neighbour’
policy as it was known in the 1930s -- is an escalating leakage of monetary
stimulus into the global system.
So don’t fight the Fed, and never fight the world’s central banks on multiple
fronts.
Stock markets have already sensed this, up to a point, lifting Tokyo’s Nikkei
by 23pc and Wall Street by 10pc since June. (more)
No comments:
Post a Comment