These folks like the monetary and financial systems just fine the way they are and will likely make it hard to build a
truly competitive currency.
And going forward, returns will be constrained by some of these same comfort factors, namely a
less competitive currency and dearly priced real estate market.
Officials from some countries, such as Germany and South Korea, have hinted at concerns that if the BOJ increased debt purchases this would weaken the yen and spark a wave of
competitive currency devaluations.
«Manufacturers are tapping into new home building and renovation activity in Australia and a
more competitive currency internationally to make sales at home and abroad,» chamber boss James Pearson says..
Other regional currencies followed the yuan down as markets began to worry
about competitive currency devaluations from trading partners.
It was two pamphlets that Hayek published in the 1970s — first, Choice in Currency (1976) and then Denationalisation of Money (1978)-- that caused the scales to fall off of my eyes and of those of some other economists, thereby encouraging us to reconsider the merits of private and
competitive currency systems.
The combination of a recovering U.S. economy and the
more competitive currency are showing early signs of a bounce in exports, a trend that is needed to continue in the year ahead for overall economic growth to accelerate.»
In an interview with Bloomberg, Soros claimed that China's slowdown is combining with lower oil prices and
competitive currency devaluations to increase the risk of deflation around the world.