Thursday, September 25, 2008

Need clinics to cure currency illness by Chandra

Here is an article says that the “US took way back in 1944 hot on the heels of World War II when together with its staunchest ally, the UK, it established the Bretton Wood twins and urged the world to adopt its currency as the international referen ce currency in exchange for an ounce of gold for every $35 surrendered” further “US dollars — domestic and offshore. At a rough estimate, one reckons that the quantum of the US dollar in circulation in the offshore market at any given point of time can easily rival that in circulation in the domestic market”.

In fact it is true that “China by deliberately following the policy of keeping its currency devalued with a view to facilitating its export-led growth and the US through its policy of offering its currency as the international reference currency”.

 But somehow the world also enjoyed cheaper goods from China!

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