While any American who is vacationing overseas this year would not agree that the Dollar to Euro exchange rate is at a good level, it appears that the U.S. manufacturing sector would disagree. While I don;t like the idea of a weak dollar in the global currency market, I do like the idea of cheaper American goods on the world market and more American manufacturing jobs. Hopefully the benefits will eventually outweigh the costs.
Euro vs. Dollar: More factories may be U.S.-bound – Autoblog
Economic policy and manufcaturing
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One response to “Economic policy and manufcaturing”
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The fluctuations of currencies should bring an equal number of winners and losers, but the exporters are usually more organized so there is a sense that a “weak” currency is better for a country. Hence the current concern in France about the high value of the euro.
Howver, EVERY country cannot have a “weak” currency, so there is always concern that some countries are manipulating the system better than others.
The long term answer is a Single Global Currency managed by a Global Central Bank within a Global Monetary Union.
The Single Global Currency will bring huge benefits to the world:
– Annual foreign exchange transaction costs of $400 billion will be eliminated.
– Worldwide asset values will increase by about $36 trillion.
– Worldwide GDP will increase by about $9 trillion.
– Global currency imbalances will be eliminated.
– All Balance of Payments problems will be eliminated.
– Currency crises will be prevented.
– Currency speculation will be eliminated.
– Currency fluctuations, and the need for hedging, will be eliminated.
– The need for foreign exchange reserves, now over $4.3 trillion, will be eliminated and these funds can be used for more productive purposes than maintaining an inefficient foreign exchange system.
If a monetary union in Europe works well (still an issue for a number of economists) for 13 countries, soon to be 15 and then 22, then why not plan now for a monetary union for 192 countries?
For more information, please visit the website of the Single Global Currency Assn. at http://www.singleglobalcurrency.org. Our goal is implementation by 2024 and we published the book, “The Single Global Currency – Common Cents for the World” and invite comments, suggestions and criticisms.
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