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  • About
  • Knowledge Centre
    • Economic Growth and the Business Cycle
    • Monetary Policy and Inflation
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    • Financial Markets
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  • Forecasting Tools
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Tag Archives: Currency Manipulation

Who Wins and Loses from Reserve Accumulation?

Trade and Balance of PaymentsBy Stuart AllsoppDecember 16, 2018Leave a comment

Intro: To accumulate foreign reserves, central banks must buy dollars, weakening the value of their currency to the benefit of foreign importers. While there is no doubt that such measures by trade surplus countries such as China have undermined low-end manufacturing in deficit countries such as the US, this has been more than offset by…

The Trouble with Currency Manipulation

Economic Growth and the Business CycleBy Stuart AllsoppJuly 27, 2018Leave a comment

Intro: Artificially weakening a country’s currency may appear to be beneficial for economic growth as it often leads to higher exports in local currency terms. However, while exports as a share of GDP may rise due to higher profitability in that sector, this is typically more than offset by the losses in the domestically-focused industries,…

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