Friday, March 18, 2011

Depends on your definition of 'free'

Our free market handlers have decided that a USDJPY below 80 is too low (apparently the same ones who claim that a 6.6 USDCNY rate is too hight). As a result, the Fed intervenes in the currency markets for the first time (as far as we know) in 11 years. One might scratch their heads thinking this goes contrary to the stated objective of the US to significantly increase exports over the coming years. Increasing exports must have gotten bumped down the priority list.

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