Comments for The Value of the Dollar Is NOT Out of the Control of Politicians at http://www.cepr.net , comment 1 to 5 out of 5 comments http://www.cepr.net Fri, 24 May 2013 07:30:54 +0100 FeedCreator 1.7.3 http://www.cepr.net/index.php/blogs/beat-the-press/the-value-of-the-dollar-is-not-out-of-the-control-of-politicians#comment-18694 Would it be easier to simply legalize counterfeiting? - freebird Fri, 07 Sep 2012 07:17:58 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-value-of-the-dollar-is-not-out-of-the-control-of-politicians#comment-18693 Here is some excellent support for your argument for David Glaser of the blog "Uneasy Money." You guys probably would not agree on much, but you agree on this: Cochrane asserts that the Fed has no power to raise nominal income. Does he believe that the Fed is unable to depreciate the dollar relative to other currencies?… [D]oes he believe that the Fed is less able to control the exchange rate of the dollar in relation to, say, the euro than the Swiss National Bank is able to control the value of the Swiss franc in relation to the euro? Just by coincidence, I wrote about the Swiss National Bank exactly one year ago in a post I called “The Swiss Naitonal Bank Teaches Us a Lesson.” The Swiss National Bank, faced with a huge demand for Swiss francs, was in imminent danger of presiding over a disastrous deflation…. The Swiss National Bank could not fight deflation by cutting its bank rate, so it announced that it would sell unlimited quantities of Swiss francs at an exchange rate of 1.20 francs per euro, thereby preventing the Swiss franc from appreciating against the euro, and preventing domestic deflation in Switzerland. The action confounded those who claimed that the Swiss National Bank was powerless to prevent the franc from appreciating against the euro. If the Fed wants domestic prices to rise, it can debauch the dollar by selling unlimited quantities of dollars in exchange for other currencies at exchange rates below their current levels. This worked for the US under FDR in 1933, and it worked for the Swiss National Bank in 2011. It has worked countless times for other central banks. Why at I would like to know is why Cochrane thinks that today’s Fed is less capable of debauching the currency today than FDR was in 1933 or the Swiss National Bank was in 2011?" http://uneasymoney.com/2012/09/06/john-cochrane-misunderestimates-the-fed/ But of course Tim Geithner and Barack Obama, being true disciples of Robert Rubin would be shocked at the very idea. - sherparick Fri, 07 Sep 2012 07:02:54 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-value-of-the-dollar-is-not-out-of-the-control-of-politicians#comment-18692 Thanks for the explanation of the mechanisms for lowering the value of the dollar. Rubin and his crowd did just the opposite in the 90s. - Bill Fri, 07 Sep 2012 07:01:16 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-value-of-the-dollar-is-not-out-of-the-control-of-politicians#comment-18686 As a non-US-citizen, I always wondered if this: http://en.wikipedia.org/wiki/United_States_Note wouldn't still be possible? - FS Fri, 07 Sep 2012 03:44:59 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/the-value-of-the-dollar-is-not-out-of-the-control-of-politicians#comment-18675 Sounds like it's time for those backbones of steel to stand up against the Waltons et al. - David Fri, 07 Sep 2012 02:05:56 +0100