http://baselinescenario.com/2008/10/27/starting-to-wonder-about-internal-g7-dynamics-just-a-little/ What happened to the global economy and what we can do about it Sat, 02 Jun 2012 18:26:14 +0000 hourly 1 http://wordpress.com/ http://baselinescenario.com/2008/10/27/starting-to-wonder-about-internal-g7-dynamics-just-a-little/#comment-562 Mon, 27 Oct 2008 17:04:19 +0000 http://baselinescenario.wordpress.com/?p=888#comment-562 [...] The G7 did speak on major exchange rates, over the weekend, as expected. But they only spoke about the yen’s “recent excessive volatility.” This was about the least they could say under the circumstances, and it is not clear that it will do anything – other than encourage further flows into the dollar. Why did they not mention the dollar, the euro, and the British pound? … It could be the case that the Europeans like the depreciation of their currencies, as this will help cushion the recession. … Still, it would be odd if no one at the G7 table isn’t already raising the dangers of deflation (falling prices), particularly in the U.S. … When people talk about avoiding the mistakes of the Great Depression, they mean in large part not allowing prices and wages to fall. — Simon Johnson, Baseline Scenario [...]

]]> http://baselinescenario.com/2008/10/27/starting-to-wonder-about-internal-g7-dynamics-just-a-little/#comment-553 Mon, 27 Oct 2008 13:54:04 +0000 http://baselinescenario.wordpress.com/?p=888#comment-553 [...] The G7 did speak on major exchange rates, over the weekend, as expected. But they only spoke about the yen�s �recent excessive volatility.� This was about the least they could say under the circumstances, and it is not clear that it will do anything – other than encourage further flows into the dollar. Why did they not mention the dollar, the euro, and the British pound? � It could be the case that the Europeans like the depreciation of their currencies, as this will help cushion the recession. � Still, it would be odd if no one at the G7 table isn�t already raising the dangers of deflation (falling prices), particularly in the U.S. � When people talk about avoiding the mistakes of the Great Depression, they mean in large part not allowing prices and wages to fall. — Simon Johnson, Baseline Scenario [...]

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