To: Lee who wrote (543 ) 9/2/1998 10:38:00 AM From: Robert Douglas Read Replies (2) | Respond to
To all:Throughout it all, the U.S. has had no policy that would deal with the heart of the global currency problem: a strong dollar and a cycle of devaluations. The current Band-Aid approach included the following elements: Until further notice, all developing countries are to keep interest rates dramatically higher than they can afford, spreading recession across the developing world. Economies that link their currencies to the U.S. dollar-important ones such as Argentina, Brazil, China and Hong Kong-get no clear guidance on the future value of the greenback. To avoid accountability, the U.S. maintains the fa‡ade that the IMF is dealing with the crisis and that Japan is to blame for much of it. The U.S. encourages countries to enact vague and painful "reforms," never mentioning or forcing the one reform that matters most-a policy of currency stability.
