…each surviving promise ballooned – currency deflated drastically and almost instantaneously. Huh? Isn’t inflation still piddling along at one or two percent? We are warned about deflation and we have…

…activities, because they are creators of currency. That the US has the reserve currency is an irrelevant consideration here. The key distinction remains user vs. creator. The euro zone nations…

…a full employment economy. Governments that issue debt in their own currency and do not promise to convert their currency into anything else can always “afford” to run deficits. Indeed,…

…generally have to endure brutal cuts in public spending, which deepen recessions. To counter that effect, the IMF typically counsels a weaker currency. Sadly, this is not an option for…

…debts in a currency it controls. Public defaults happen only when governments don’t control the currency in which they owe debts–as Argentina owed dollars or as Greece now (it hasn’t…

…Let’s think about the currency from a U.S. auto exporter’s viewpoint. The China Daily looks at China’s relatively “young” automotive market compared to its developed U.S. counterpart. But what if…

…Policies; it states that officially no foreign central bank has explicitly manipulated their currency since 1994 but pointed the finger at China for their currency policies that inhibit the unwinding…

…is that the US is fundamentally different from other countries because it can borrow in its own currency. Well, most of the countries in the chart above were doing most…

…China were to liberalize its capital account regime – on capital inflows as much as on capital outflows – and stop intervening, the Chinese currency could appreciate by more than…

From the Financial Times: US expects Chinese currency revaluation The Bush administration has told key senators that it expects China to revalue its currency in August ahead of a planned…