2.21.2010

Competitive devaluation

Mish:
Krugman wants a weaker dollar, Mundell wants a weaker Euro, Japan wants a weaker Yen, and everyone wants a stronger Yuan except China.

It is impossible for everyone to get what they want: a weaker currency vs. everyone else hoping to stimulate exports.

Academia is never concerned with such details.

My money is on Zimbabwe Ben. He's a more fanatical debaser of the currency than his European counterparts. The Eurozone will break up before they'll print enough to keep up with ZB.

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