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King championed a lower exchange rate.
Yet the UK's only salvation has come through a lower exchange rate.
Lower interest rates would lead to a lower exchange rate, boosting production and exports.
A lower exchange rate will make imports dearer, pushing up inflation.
Without these in operation to improve the UK's performance, a lower exchange rate became inevitable.
Mervyn King, the previous governor of the Bank of England, hailed the lower exchange rate as a "welcome change".
Similar(29)
The fact that it didn't also lower exchange rates simply shows that no policies act in a vacuum.
Some have lowered their profit margins rather than steeply increase prices, and large companies can hedge currencies to lock in lower exchange rates for 2005 and 2006.
But if that were true, how is it that other countries have engineered lower exchange rates without difficulty and do so regularly?
That is a green light for countries such as Brazil, which has already sought to stem massive inflows of capital, to take further measures, short of deliberately engineering a lower exchange rates.
In a move that underscored a lack of options in quelling the currency crisis, Iranian authorities resorted to ordering money changers to post much lower exchange rates for dollars in their shop windows Wednesday.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com