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Aha. Floyd Norris reminds us of the 23-economist letter from 2010, warning of dire consequences — "currency debasement and inflation" — from quantitative easing.
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The consequences of currency union without fiscal union in the euro zone are clear.
It is hard to believe that he does not realize this is a consequence of currency degradation.
The scale and consequences of its currency regime are alike unprecedented.A fast-growing economy with the world's largest current-account surplus ought to see its currency rise.
Framing the issue as a dispute between the two countries, he added, "suits the Chinese well as it deflects attention from the global consequences of Chinese currency policy".
LAST week, European leaders met in Berlin amid new signs of an impending recession and an emerging consensus that Greece could leave the euro zone within a year — a move that would have dire consequences for the currency's future.
"If the radical left wins — which cannot be ruled out — the consequences for the currency union are unforeseeable," said Jean-Claude Juncker, who chairs the euro zone's finance ministers' group.
Reserves have dropped dangerously low.The political and social consequences of the currency collapse have so far been mild: the traders' week-long strike has been the most disruptive event.
The transactions would be completely off-market and thus avoid the exchange-rate consequences of Chinese currency diversification that could otherwise be extremely uncomfortable to the United States and the euro area.
Fret at the consequences of a currency union unsecured by political strength.
Not only do the markets and politicians hate tightening phases, but the economic weakness across much of the rest of the world prohibits too much of a policy divergence without serious and disruptive consequences in the currency markets.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com