Is Australia Next in Competitive Currency Debasement?

by Mike Shedlock
MISH’S Global Economic Trend Analysis
Japan, the US, the UK, Switzerland, China, and even the EU with the LTRO (and upcoming hinted at rate cuts) are all in on competitive currency debasement.
The question at hand is “who is next?” How about Australia?
The Sydney Morning Herald reports RBA May Have to Cap Australian Dollar

Ross Garnaut, one of the authors of the float of the Australian dollar 30 years ago, warns that the Reserve Bank might have to consider intervening to push the currency down to minimise the recession he sees coming as the mining boom goes bust.

Professor Garnaut, of the University of Melbourne, says he would rather see the Reserve cushion the economy’s looming fall and bring down the overvalued dollar by cutting interest rates to bring them closer to those of other Western countries.

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