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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (77391)	3/9/2000 9:04:00 PM
From: BGR	Read Replies (1) \| Respond to of 132070

Wayne, Yes, central banks can influence currencies. In fact, it is part of their job to do so. However, the market finally decides the exchange rates and not the central banks. I think that you are making a big deal of the power the central banks have. This is how I see it. Any time a currency move happens that person X (representative of many on this thread, including you, IMHO) seem to like, it is the market prevailing over the central banks. Any time a move happens that person X dislikes, the evil central banks are up to their tricks and the market is no longer free. Fact is, the market decided both moves. Just because it disagrees with you doesn't make it less free or less correct. It's just like democracy. My point was simply that of all the factors that influence currency exchange rates over the long term, relative growth rates are by far the most important. Ignoring that and focusing on a relatively minor factor is unwise. -BGR.