Wednesday May 25, 2022

Weaken your mnu, posl tm svj stt! – this is the trend of the day

America is beating itself up with those who can reduce the price of their goods in order to make the best sale in the world. Therefore, use different ways to deploy your courses as much as possible. wolves are changing and this has great consequences – you will gradually disappear from Europe from the economic map of the world.

Less than a quarter ago, Brazilian Finance Minister Guido Mantega used the term “wolf name” for the first time. And two weeks ago, a group of the G20’s most powerful countries acted on this issue quite inconspicuously, and the effects of this phenomenon are being discussed by almost all relevant economists and financiers in the world. Don’t worry. What is happening in the world’s financial markets today is without a doubt the biggest shift in economic power since the end of the wolf world. And Brazil, its minister was the first to warn against the new wolves, is one of the countries that has made the most of this move.

Hon na now

By new wolves, it is understood to mean an underestimation of me, which is practiced by some states to take advantage of their exporters. The classic case is on, its currency is against the dollar, according to the opinion of most world economists at a strongly undervalued exchange rate. What leads to the fact that Czech goods are cheaper and push competitors out of the country, their exchange rate is free to float and adapts to the development of the domestic economy.

Minister of Finance

US Treasury Secretary Timothy Geithner.

Because of this, the US pressure is strong. US Treasury Secretary Timothy Geithner warned of the arrest of this year against the danger of wolves in the form of competitive devaluations (devalued mn – note red.), which may threaten the world economy. Speaking in a position before the six-month session of the International Monetary Fund and the World Bank, the United States said: “Countries with chronically high surpluses must adopt policies that support their domestic demand. America will continue to read more, and a country that relies on exports to us as it grows will have to change its policy, otherwise global growth will slow and we will all be there. ” In other words, it should limit the artificially devaluing of my currency, so that imported (American) goods become cheaper and they start buying more.

America finds this problem so noticeable because the financial crisis has been hit hard and the economic recovery in the US is weak and weak. For a long time, American growth was based on household consumption – and those with the crisis began to feel. And don’t take dn stimuli on n. Although the spread of budgets made it a different type in public finances, the impact on the (still high) unemployment rate was negligible. A very relaxed monetary policy with zero years and easily accessible pensions does not encourage people to shop – and thus to spin the wheels of the economy.

nsk President Chu in-tchao (Jan 18, 2010)

At the same time, in previous crises, it was the first American consumer who was pulling the world economy out of trouble. For example, during the entry-level crisis in the late 1990s, the US Federal Reserve cut its interest rates sharply, boosting domestic demand, which helped Asian countries to export hard to cope with the effects of financial caroms.

So it’s no wonder that Americans now want Asia to succumb first to the aftermath of the worlds financial crisis. Only anm, but also other countries, which are now growing rapidly, do not want to help. Now they have to catch up with the land in the past and do not intend to waste this complexity.

The Americans thus sailed in vain from the vain to others, which, around an undervalued course, turned wolves into hot air. Fed (American Central Bank – note ed.) He joined the so-called quantitative easing, which can be described with some enthusiasm as the printing of a huge amount of new dollars and their pilgrimage to the economy. This is done by the fact that the central bank buys a volume of securities from commercial banks in advance. The team actually lends them cash, which should be put into circulation.


Illustrate photo

Dollars float in Asian moths

By default, the dollars delivered should allow people to start buying consumer goods, domestic demand will increase, companies will increase production, they will hire employees, and thanks to the acquisition, they will be employed by large-scale purchases and the American economy will start to grow. The Fed carried out such a quantitative release in the autumn of 2008, following the investment of Lehman Brothers, at the time of the outbreak of the financial crisis in the United States. It is generally believed that the then dark Fed prevented a deep decline. Now it doesn’t work like this – the American consumer is not in the light of light. See how their manufacturers are struggling with foreign competition, and the number of vacancies in American companies is not growing. In addition, the giant US budget deficit warns: two or later will have to grow taxes, because the national debt will have to pay somehow. Amerian knows that you have to pay debts, even if they are stunned – unlike an admirer of one of our former prime ministers. So their breeding is different. et. And banks have to increase the value of pensions obtained from households and central banks. Poor insight into the US economy and the huge growth of Asian countries leads to the fact that heavy dollars are invested abroad. And this in countries where the exchange rate is not fixed, it leads to the strengthening of domestic currencies and damage exports.

In some, where a fixed exchange rate exists, these supplementary pensions increase the amount of cash in circulation, it raises prices and inflates bubbles in stock markets and real estate, which poses a threat to future economic development – both in terms of reasonably high inflation and risk of various crises. And domestic inflation at a fixed exchange rate means that companies prefer to sell at home rather than abroad, and the purchase of domestic domestic wages in imported goods is growing. na tak mn vyv.

f Mezinrodnho mnovho melted Dominique Strauss-Kahn.

This world is not for star

At the G20 summit, Timothy Geithner convinced partners that the US did not embark on the path of a weakening dollar and did not want to compete in devaluations. Passed the salamander’s bag.

True, the weak dollar is of little importance to the US economy because the US economy is relatively closed and, through foreign trade, realizes only about fifteen percent of its gross domestic product. However, the weak dollar is a strong political tool that has pushed the country to change economic policy through the weakening of their export performance.

The question is whether this American policy is not counterproductive. Of course, this development has the greatest consequences for world trade. And not the most proficient ones. There may be various restrictions on the spitting capital, which will affect the affected country will spit out the spitting of cheap dollars. In return, there may be various business restrictions. These barrels are detrimental to the world’s trade and will significantly reduce the path to a stronger and lasting recovery for their economies. And there will be a growing political tension between rapidly developing countries and the West. There is no doubt that the two countries are referred to as developing firmly among the most powerful economic elite.


Tba deva v severn sti brazilsk Amazonie.

Europe is over

It is quite acknowledged that Europe is not afraid of the monk lifts and their participants are not even very interested. The old continent is in the overall reorganization of economic power between the losers, many Europeans would still not want to admit it. While a new division of the world is being decided, MEPs in Brussels are asking for their own European tax, so they can run their own business. if they will init on the planetary periphery, they will probably go on the net.

The weakening of the dollar and the associated decline in the January euro, is the first for the rest of the competitive European industry. Due to exchange rate changes in the key Czech market, the technology supplier has to become more expensive or, at the very least, lose a substantial share of its profits – and our goods in Europe are becoming cheaper.



In addition, the strengthening of the euro is having an impact on the hospital of the European Union. With such a modest competitiveness of Czech, Portuguese and Spanish goods on the world market, together with a stronger one, it is losing ground. From this point of view, the only European country that will continue to be among the most economically strong countries in the world is Germany. Unless, of course, it will be burdened by drastically high costs to save the failing eurozone countries.

Although I have a relatively good perspective, because due to the economic ties with our western neighbor, we also benefit from its competitiveness. Of course, this does not mean that we can rely on Germany. We have only our koruna, which, given the current state of the euro area, has its advantages, but it also has disadvantages. It can be expected that the koruna will strengthen not only the dollar, but also the euro. And the Czech National Bank has virtually no opportunity to prevent such a messenger. Given that the Czech economy is largely existed in transport, there is a great risk that the future will not be so bright.


The development of the koruna exchange rate against the dollar.

In the regime of a free-floating exchange rate, which pays for the koruna, against the trend of strengthening the koruna could only act significantly in inflation, it is not yet. The question is whether the Bank Board, which is looking at inflation in the Czech Republic, will have the courage to revise its inflation rate. Zatm m NB efforts to drill price growth in the Czech Republic around two percent. Nowhere is it written that this duty could not be moved to five percent. This would require a relatively substantial change in the minds of the Bank Board alone, which should not respond to the strong inflationary pressures in the economy that are emerging with accelerating economic growth. Accepting you inflation (and therefore, for example, me a suitable connection) is not easy and even against it. It seems very likely that the NB will follow the development of the koruna’s exchange rate very closely and will take it into account when deciding on the annual rates, which are very likely to remain at the current, record low level for a very long time.

Miroslav Singer

Miroslav Singer

In any case, it is now important for companies, but also for the government, that the strengthening of the Czech koruna exchange rate is divided only by a very steep wage policy. A stronger koruna can only be offset by the fact that labor productivity will grow significantly faster than wages. This is crucial for companies, but it is important that the pressure on wage growth does not encourage the development of salaries of employees, which has happened in recent years. And now NERV points this out. First, wage moderation and labor market reforms were the foundation from which the German response to the crisis grew. And we should learn from it.

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