>>>>>Then, Baker and Reagan killed the dollar in late 1986, as Clinton, Rubin and Greenspan are doing today<<<<<
Thanks, Mike, for sharing your knowlege with us. I humbly admit I don't know what you mean by the above sentence. In 1986, did the Federal Reserve cut interest rates, or "inject liquidity"?
If you plot French francs per U.S. dollars, you can really see what I am talking about, although Deutschmarks and Swiss Francs also work. I would hypothesize that United States monetary policy was different during the time period roughly 1980-81 and ending in 1987-88. Coincidentally, Reagan was president during 1981-1988. If you look at French francs, they are at about 4 to the dollar at the end of 1980, spike up to 10 to the dollar at the beginning of 1985, and spike back down to 6 on the dollar. It's quite a sharp movement.
Are you saying that it was all caused by a change in U.S. interest rates? |
