Thursday, October 23, 2014

Always Remember That Floating Fx Reflects Policy Steps, Not Just Markets Presumed To Function In Isolation


(Commentary posted by Roger Erickson)

Naïveté = uncertainty.

There is no such thing as Free Trade. There are only policies affecting arbitrage opportunities for different people, disciplines and whole classes of citizens. 

Statesmanship means trying to track the long-term implications of policy for national options. Politicians are hired to NOT paint their electorates into corners which the people on the street can't possibly see coming.
Currency Wars: The Next Generation
(hat tip Art Patten)


3 comments:

Dan Lynch said...

There is no such thing as Free Trade. There are only policies affecting arbitrage opportunities for different people, disciplines and whole classes of citizens.

Well put, Roger.

Roger Erickson said...

Glad you agree Dan.

Now we just need to put similar statements into about 130 million households in the USA.

Each with LOCAL contact info, for people able to start answering all the ensuing questions.

(Heck, I'd settle for 12 million households. We got a LONG way to go. We need a marketing campaign. Any ideas?)

Roger Erickson said...

Message to JJ 6pack,

from industry CEOs who hire lobbyists:

"We can guarantee to paint you (and your Middle Class too) into a corner ... for ONLY 400x your salary!"

Ooh! Don't delay? Get it while it lasts?