And that means further depreciation of the dollar.

The government was also too slow in depreciating the ruble.

Currency undervaluation is such a potent instrument for growth for the simple reason that it creates incentives for the economy s growth promoting sectors.

Its purpose is not to encourage the depreciation of the yen, despite complaints about the yen s depreciation.

First, it contributes to yen depreciation and dollar appreciation as carry traders switch out of yen.

Since the 1990 s, both China and India have received a huge boost from their undervalued currencies.

Nor is the Fed specifically aiming to lower the dollar s value.

Dollar depreciation improves Europe s terms of trade and real income.

First, the value of financial institutions investments should immediately be marked down to their market values.

President Miguel de la Madrid resorted to currency devaluations which in turn sparked inflation.

Indeed, avoiding continuous competitive devaluations is more a blessing than a curse.

Simply put, there must be dollar depreciation to keep global imbalances in check.

Chile made its transition to high growth in the 1980 s on the back of a large depreciation.

In China s view, it is not enough merely to require others to accommodate themselves to dollar devaluation.

The higher the cost of oil, the lower the dollar has to be to achieve any given reduction in the size of the trade deficit.

When the Canadian dollar sharply appreciated, the Bank of Canada did more than talk it cut interest rates.

The second possibility is a more pronounced devaluation of the dollar, bringing it well beyond the current levels relative to both the euro and the yen.

If major consumer countries and most producer countries do not join the agreement to reduce CO2 emissions, it could be useless.

Indeed, the Treasury s only explicit currency goal now is to press the Chinese to raise the value of the renminbi, thereby reducing the dollar s global trade weighted average.

In 1816, the gold standard was adopted officially, with the silver standard reduced to 66 shillings (66 , 3 6s), rendering silver coins a token issue (i.e., not containing their value in precious metal).

To boost the value of their shares, these shareholders backed the drive to reduce the global volume of the payroll and the number of workers that companies employ.

During the 1998 financial crisis, devaluation would have hurt those who owned local real estate but had little earnings or assets in US dollars.

This could be an explicit devaluation or an implicit one due to a price reduction, made possible by the reduction in unit production costs resulting from the extra working time at constant pay.

The currencies of the reform laggards would have depreciated against that of Germany, and there might have been a supportive cut in interest rates as well.

The Europeans gladly went along with this charade because they now fear dollar depreciation more than global imbalance.

Moreover, manipulation of official statistics highlights the problems of an economic model based on peso depreciation and the accumulation of reserves.

Export led growth did not take place rapidly after devaluation, because of either the narrow base of exports or adverse conditions in global markets.

First, it contributes to yen depreciation and dollar appreciation as carry traders switch out of yen. Second, it increases global asset demand, generating asset price inflation.

External political pressure on the ECB and its president, Jean Claude Trichet, to lower interest rates and talk the euro down surely would increase.

Why should the French undertake painful reforms when their newly elected leader has just promised to protect them from a strong currency and further interest rate increases? Why not simply wait for Sarkozy to get the euro down and the ECB to lower interest rates?

Moreover, because financial institutions assets were bought mainly with borrowed money, the shortage of credit is exacerbated by their need to deleverage.

Indeed, without the single currency, many of these countries would have succumbed to a downward spiral of devaluation, default, and recourse to the IMF.

Noise Reduction...

Noise Reduction

This is economists polite code for the message that the US must gradually cut its budget deficit, while other countries like China and Japan must gradually let the value of the dollar fall and that of their own currencies rise.

The other affected everyone but was less severe Russia s 1998 default, which saw a fourfold devaluation of the ruble.

Market pressures appear poised to stabilize and over the longer run possibly to decrease the US current account deficit and its attendant financing requirements, he said. But just two months earlier, in Frankfurt, Mr. Greenspan had cautioned that the US deficit could not go on forever without the dollar depreciating.

Reducing nuclear danger

Reduction of military budgets

The value of freedom. It's a value of community.

A sizeable reduction in aggregate demand through RMB appreciation is achievable without being imprudent, because the current account surplus in 2007 was 9.5 of GDP.

The Value of Being Undervalued

Reduction of military budgets

(o) Reducing nuclear danger

Subordination agreements