May 19, 2011

The Exchange Rates Game

In this fundamental exchange rate game, the currencies that should be appreciating are those that are undervalued with large current account surpluses.

While the ones that should be depreciating are U.S., U.K. and other countries that had their bubble, then bust, and now need net export growth, given that domestic demand is anemic with balance sheet retrenchment. - in a Bloomberg interview with Tom Keene