Goodbye, Free Trade?
High tariffs and currency wars cost us big in the 1930s. We can avoid making the same mistakes again.
http://online.wsj.com/article/SB10001424052748704696304575538573595009754.htmlOn infation, he wrote
"The great concern is that an expansionary monetary policy will lead to uncontrolled inflation, destroying faith in the dollar. Similar sentiments were expressed in the 1930s by advocates of "sound money" who opposed going off the gold standard. Such fears may be justified in ordinary times of full employment, but when there is considerable slack in the economy and unemployment remains high, monetary policy can help to raise output before it leads to higher prices."
Sure enough that's the solution Feb is seeking. However before the US finally raises output the rest of the world may have been inflated to the moon.
Related stories:
Brazil doubled tax on currency transaction - a "Tobin tax" and other currencies Korea/India/Philippines/Indonesia/Thailand/Japan
http://www.bloomberg.com/news/2010-10-05/currency-controls-tighten-as-korea-audits-banks-brazil-doubles-bond-tax.html
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