Frank, in a comment on my previous post, Doubling Down on Exports, asks an excellent question: “is there any way to really achieve Obama’s goals of doubling exports other than a massive devaluation of the dollar?” He anticipated my plan to address the currency issue in more detail in another post, mainly this one.
As I noted in my response to Frank, Obama has specifically mentioned the currency issue in relation to his plan to increase U.S. exports. Earlier this week Obama said, “one of the challenges that we’ve got to address internationally is currency rates and how they match up.” Lots of people are complaining about China keeping the Yuan artificially low. But, we should remember that lots of countries over the last 30 years have been doing the same thing. As if Toyota doesn’t have enough problems, they and Read the rest of this entry »