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Isn't being able to manipulate their currencies exactly the reason countries maintain currencies of their own? Don't other countries like Japan and the USA mani
by qwerty456127 7y ago
Isn't being able to manipulate their currencies exactly the reason countries maintain currencies of their own? Don't other countries like Japan and the USA manipulate their currencies routinely?
- ElFitz 7y agoThey also do it to have currencies better reflecting their economical state, with it's own advantages and disadvantages. I'd say a developing country with a small internal market typically wouldn't have a strong currency, which would be great for their exports, thus supposedly boosting their economic growth. Without any manipulation. But maybe I'm getting it wrong
- Symmetry 7y agoGenerally by "currency manipulation" people don't mean manipulation of the value of the currency in general but manipulation of its value with respect to foreign currencies in particular. So if the US just prints money to combat deflation that isn't currency manipulation but if it used all the money it printed to buy Yuan that would be. But really the whole public discourse around the topic is pretty confused. In the long run trade balances are governed by savings rates and its hard to keep things out of equilibrium in the long run.