Akio Morita, founder of Sony, argues very convincingly that freely traded currencies cause too much volatility in exchange rates for export manufacturers to consistently earn a return on investment, putting entire industries at risk. It's no coincidence that China's rise has...
been characterized by strong government intervention in currency markets. Were it not for that, their industry would be wiped out at the face of a brexit-sized currency move.
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That’s a lie imho. The currencies would naturally float to the trade balances of the trading partners. What that means is the yuan and yen would appreciate given trade balance. This is PPP. This sounds like an excuse to keep an advantage and I don’t know why US tolerates it.
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What about currency speculation? The breaking of the British pound for example? Surely currencies are not volatile solely because of trade flows?
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