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Asunto: »Political & economic ideologies (communism, capitalism et
Hmm internal devaluation vs currency devaluation? I mean I somewhat cant see difference in the end...
There is no difference in the end, bot lead to consumption adjusting to productivity (unless you fuel again the same process that eroded competitiveness in the first place).
In the short run, currency devaluation involves sharp changes in exchange rates and some degree of high, perhaps 2-digit inflation for a year or two (from that point, it depends on what subsequent policies you implement), while internal devaluation involves like 10 years of 2-digit unemployment and iron fist repression of social unrest.
So yes, it's like opening a closed can. All methods that end up with the can being opened look alike in terms of the final outcome, but they may imply a very different process.
There is no difference in the end, bot lead to consumption adjusting to productivity (unless you fuel again the same process that eroded competitiveness in the first place).
In the short run, currency devaluation involves sharp changes in exchange rates and some degree of high, perhaps 2-digit inflation for a year or two (from that point, it depends on what subsequent policies you implement), while internal devaluation involves like 10 years of 2-digit unemployment and iron fist repression of social unrest.
So yes, it's like opening a closed can. All methods that end up with the can being opened look alike in terms of the final outcome, but they may imply a very different process.
There is no difference in the end,
well, the difference is IF you arrive alive at that end..
seriously, if a country continue to have an industrial sector and emplyment and public finance equilibrium .. that country have a chance. If that country choose devalutaion of prices and work.. it's a sentence to death.
I'm talking of industrialized western europeans countries, not little economies that try to emerge or all-importing countries.
For example, my speech is valid for Italy, while for Greece it is very hard whatever solution you can imagine.
In the short run, currency devaluation involves sharp changes in exchange rates and some degree of high, perhaps 2-digit inflation for a year or two
LOL
Italy devaluate its lira in 1992 around 20% on USD, inflation was around 2/3%..
That inflaction mediatic terrorism is one of the big lies people often don't look carefully at.
that graph shows the lira/ECU and inflaction in Italy:
well, the difference is IF you arrive alive at that end..
seriously, if a country continue to have an industrial sector and emplyment and public finance equilibrium .. that country have a chance. If that country choose devalutaion of prices and work.. it's a sentence to death.
I'm talking of industrialized western europeans countries, not little economies that try to emerge or all-importing countries.
For example, my speech is valid for Italy, while for Greece it is very hard whatever solution you can imagine.
In the short run, currency devaluation involves sharp changes in exchange rates and some degree of high, perhaps 2-digit inflation for a year or two
LOL
Italy devaluate its lira in 1992 around 20% on USD, inflation was around 2/3%..
That inflaction mediatic terrorism is one of the big lies people often don't look carefully at.
that graph shows the lira/ECU and inflaction in Italy:
That inflaction mediatic terrorism is one of the big lies people often don't look carefully at
Bullshit. I don´t read media. I read economics.
First: why would we "fear" inflation anyway? If you devaluate 50% and eperience 20% inflation for 1 year, where's the loss?
Second: inflation doesn't follow devaluation; higher demand does. Higher demand will lead to inflation or not depending on the size of spare capacity, the devaluation itself, investment, etc. In general currencies tend to "overshoot", so some inflation follows, but to the extent that there was a recession the real exchange rate increases anyway.
Italy didn't have inflation in 1992 just like Argentina didn't have inflation in 2002, and then had moderate inflation till 2007 (but clearly higher than 2 or 3%). Continuing to devaluate in an economy no longer in depression ended up in the current 30% inflation rate.
Last: there is a huge error in your reasoning. I said inflation "perhaps in 2-digits". It doesn't need to. And true, it may not even be a high level at first. Still, devaluation is always inflationary, just like printing money is always inflationary. For example, a deflationary economy can end up with positive, 2% inflation due to devaluations/printing. In fact, that's what central banks do when they fear deflation. That's what happened in Argentina in 2002, when it was in a deflationary depression and move to positive inflation and growth after devaluating.
I don't get your first point at all as I also pointed out the differences involved in following oen path or another.
Bullshit. I don´t read media. I read economics.
First: why would we "fear" inflation anyway? If you devaluate 50% and eperience 20% inflation for 1 year, where's the loss?
Second: inflation doesn't follow devaluation; higher demand does. Higher demand will lead to inflation or not depending on the size of spare capacity, the devaluation itself, investment, etc. In general currencies tend to "overshoot", so some inflation follows, but to the extent that there was a recession the real exchange rate increases anyway.
Italy didn't have inflation in 1992 just like Argentina didn't have inflation in 2002, and then had moderate inflation till 2007 (but clearly higher than 2 or 3%). Continuing to devaluate in an economy no longer in depression ended up in the current 30% inflation rate.
Last: there is a huge error in your reasoning. I said inflation "perhaps in 2-digits". It doesn't need to. And true, it may not even be a high level at first. Still, devaluation is always inflationary, just like printing money is always inflationary. For example, a deflationary economy can end up with positive, 2% inflation due to devaluations/printing. In fact, that's what central banks do when they fear deflation. That's what happened in Argentina in 2002, when it was in a deflationary depression and move to positive inflation and growth after devaluating.
I don't get your first point at all as I also pointed out the differences involved in following oen path or another.
Second: inflation doesn't follow devaluation; higher demand does
I agree (well, not just me, every economics book..), if you write that I probably misunderstood what you wrote in the first time.
Still, devaluation is always inflationary, just like printing money is always inflationary.
well I think the real question is about "how much?".
Talking about inflaction (not in your case, but in general) often leads to stupid conclusions as "people will pay the price of devaluation, with their money losing value.." , but if you devaluate 20% and get a 2% inflaction that's simply wrong...
for the rest I simply agree with you!
I don't get your first point at all as I also pointed out the differences involved in following oen path or another.
here I find that we can't call them differences.
If a doctor is comparing two medicinals, "A" that has some contraindication and "B" that kill the patients..
he can't just say that "both make some damages" ..
So, talking about euro area, you can't say "There is no difference in the end, bot lead to consumption adjusting to productivity", in case A you'll end up with an industrial economy still existing. In case B you'll becomed a ex-industrial country.
I agree (well, not just me, every economics book..), if you write that I probably misunderstood what you wrote in the first time.
Still, devaluation is always inflationary, just like printing money is always inflationary.
well I think the real question is about "how much?".
Talking about inflaction (not in your case, but in general) often leads to stupid conclusions as "people will pay the price of devaluation, with their money losing value.." , but if you devaluate 20% and get a 2% inflaction that's simply wrong...
for the rest I simply agree with you!
I don't get your first point at all as I also pointed out the differences involved in following oen path or another.
here I find that we can't call them differences.
If a doctor is comparing two medicinals, "A" that has some contraindication and "B" that kill the patients..
he can't just say that "both make some damages" ..
So, talking about euro area, you can't say "There is no difference in the end, bot lead to consumption adjusting to productivity", in case A you'll end up with an industrial economy still existing. In case B you'll becomed a ex-industrial country.
LOL,
those are the money french are payng to rebuy their public debt.
Socialists (like Hollande???? really you call him socialist? LOL word have no more sense at all..) have nothing to dowith it.
this graph shows france benefits from euro in the first time, and after 2010 becoming a piiigs country.
those are the money french are payng to rebuy their public debt.
Socialists (like Hollande???? really you call him socialist? LOL word have no more sense at all..) have nothing to dowith it.
this graph shows france benefits from euro in the first time, and after 2010 becoming a piiigs country.
I think you don' understand what direct investiments really hides.
What is your point? You want a serious discussion or get rid of the underbelly feelings on a game site?? I think the last one, like too many others who just spam 1 link on the forum, not even taking the time to make a point but just to show their feelings.
If you really want to have a financial discussion (and it looks like you do because your always posting links about money!), better find a good financial discussion forum to do that instead of posting links on a soccer game site. A good chance on that forum you will meet many more people who knows a lot more about this subject and like to discuss that subject as on this site.
(editado)
If you really want to have a financial discussion (and it looks like you do because your always posting links about money!), better find a good financial discussion forum to do that instead of posting links on a soccer game site. A good chance on that forum you will meet many more people who knows a lot more about this subject and like to discuss that subject as on this site.
(editado)
what is your problem man?
I posted an article about Bank of England that says that what is theached in almost every university of economics (about money creation process) is partially wrong.
I thought it was interesting to know...
But now I understand that you need me to take some part (in some imaginary debat in your head between good and bad..) unless you can't interest in something.
If you really want to have a financial discussion
I will, but if you fail in reading an article.. Is it something we can really stand?
better find a good financial discussion forum to do that instead of posting links on a soccer game site.
your will to censor other peope says it all.
If something doesn't interest you (or you don't understand it) just don't read it at all.
I posted an article about Bank of England that says that what is theached in almost every university of economics (about money creation process) is partially wrong.
I thought it was interesting to know...
But now I understand that you need me to take some part (in some imaginary debat in your head between good and bad..) unless you can't interest in something.
If you really want to have a financial discussion
I will, but if you fail in reading an article.. Is it something we can really stand?
better find a good financial discussion forum to do that instead of posting links on a soccer game site.
your will to censor other peope says it all.
If something doesn't interest you (or you don't understand it) just don't read it at all.
Why should people read your links it you didn't even took the time to write down why you think it is an interesting link?! You just post a link without any text about why you post it.
And it has nothing to do with censor, don't be so paranoid.
(editado)
And it has nothing to do with censor, don't be so paranoid.
(editado)
I think a curious and intelligent person that read "The money multiplier is dead",
ask himself if it interest him enough to click over it.
If the answer is "yes", he does. Then he read until he care about or like it.
If the answer is "no", he skips it. Then he goes elsewhere and read/do something else.
I want to ask you:
why do you need me to say something more to decide if it interest you?
Anyway if you really need to know what I think about it i think that THIS IS TRUE:
Monetary policy therefore focuses on the PRICE of money, not its quantity, since changes in the price of money will influence the returns available to banks for lending and therefore their willingness to lend.
ask himself if it interest him enough to click over it.
If the answer is "yes", he does. Then he read until he care about or like it.
If the answer is "no", he skips it. Then he goes elsewhere and read/do something else.
I want to ask you:
why do you need me to say something more to decide if it interest you?
Anyway if you really need to know what I think about it i think that THIS IS TRUE:
Monetary policy therefore focuses on the PRICE of money, not its quantity, since changes in the price of money will influence the returns available to banks for lending and therefore their willingness to lend.