David Glasner has a winding but ultimately interesting read about currency manipulation including this stinger,
"...Mary Anastasia O’Grady’s assertion that Ben Bernanke is guilty of currency manipulation, ...based on the fact that Bernanke is expanding the US money supply, is clearly incompatible with Max Corden’s exchange-rate-protection model. In Corden’s model, undervaluation is achieved by combining a tight monetary policy that sterilizes (by open-market sales!) the inflows induced by an undervalued exchange rate. But, according to Mrs. O’Grady, Bernanke is guilty of currency manipulation, because he is conducting open-market purchases, not open-market sales! So Mrs. O’Grady has got it exactly backwards. But, then, what would you expect from a member of the Wall Street Journal editorial board?"
And for a follow-up, here's more on the PBC reserve requirements and sterilization talk.
"...Mary Anastasia O’Grady’s assertion that Ben Bernanke is guilty of currency manipulation, ...based on the fact that Bernanke is expanding the US money supply, is clearly incompatible with Max Corden’s exchange-rate-protection model. In Corden’s model, undervaluation is achieved by combining a tight monetary policy that sterilizes (by open-market sales!) the inflows induced by an undervalued exchange rate. But, according to Mrs. O’Grady, Bernanke is guilty of currency manipulation, because he is conducting open-market purchases, not open-market sales! So Mrs. O’Grady has got it exactly backwards. But, then, what would you expect from a member of the Wall Street Journal editorial board?"
And for a follow-up, here's more on the PBC reserve requirements and sterilization talk.
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