The blessing of a strong currency

posted by
March 4, 2012
Ludwig von Mises Institute
by David Howden and Brenna Sanae Kajikawa  
Posted in Commentary

"A strong currency is typically seen as a double-edged sword. While most people enjoy looking at their bank statement and seeing lots of money, they only do so if that money means something. Strong currencies enable money holders to enjoy more goods that are imported -- trips to foreign lands, or exotic electronics become more affordable. The flip side is that the producers of these goods -- the foreigners with the relatively strengthening currency -- are typically viewed as being at a cost disadvantage. Some anecdotal evidence from Japan from the last 20-plus years questions this reasoning." (03/02/12)  

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