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Mr. Greenspan said the United States was "pursuing a policy of currency weakening" and increasing the risks of trade protectionism.
— Dominic Wilson, a senior economist at Goldman Sachs Americaa is also pursuing a policy of currency weakening".
But with the currency weakening it makes little sense except as a way of unsettling investors.Exasperated economists blame Recep Tayyip Erdogan, the mildly Islamist prime minister, for this aversion to raising the interest rate.
With the single currency weakening in anticipation of further monetary easing by the European Central Bank, this hoard was likely to grow to epic proportions.Perhaps because I live in Hong Kong, where the monetary authority's foreign assets amount to over 120% of the economy's annual output, big central-bank balance sheets don't scare me.
Treasury Secretary Timothy F. Geithner got into a trans-Pacific argument with one of his former mentors, Alan Greenspan, the former chairman of the Federal Reserve, after Mr. Greenspan wrote that the United States was "pursuing a policy of currency weakening".
The slumping euro and fuel price inflation quickly took over as the dominant themes today in advance of a meeting of some of the world's top finance officials, with the European currency weakening to a record low and oil prices reaching another 10-year high.
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Singapore lost 7.3% as its currency weakened and Russia's troubles unnerved investors.
But in most of these instances interest rates fell sharply or the country's currency weakened.
Central banks typically cut interest rates and the currency weakens when governments tighten fiscal policy.
The currency weakened as much as 3.6percenttothethe dollar, and settled down 2.1percenttoto 2.4486.
A few hours later in New York, the Turkish currency weakened further, settling at 962,499.
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Justyna Jupowicz-Kozak
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