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Strategies & Market Trends : The coming US dollar crisis

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To: ggersh who wrote (3722)1/29/2008 10:58:21 PM
From: Real Man  Read Replies (1) of 71474
 
And so does the Fed and BIS, by the way.

clevelandfed.org

"According to our panel, the biggest international risk to
U.S. monetary policy is the prospect of a “hard-landing”
adjustment to global imbalances, one consisting of a rapid,
broad-based depreciation of the dollar and a rise in domestic
real interest rates. The adjustment process—depending on how
rapidly it might unfold—could easily complicate monetary
policy. This would be especially true if it occurred when the
System needed to ease monetary policy in the face of softening
domestic demand and if the central banks of other major
developed countries were simultaneously tightening their
monetary policies; under these two circumstances, domestic
policy might actually accelerate the adjustment process and
harden the landing."
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