C. Fred Bergsten, head of the Peterson Institute for International Economics, told the House Ways and Means Committee on Wednesday that a successful campaign to pressure Asian nations on the currency issue could create as many as 1.2 million new American jobs.
The definition of beggar-thy-neighbor on wiki sums it up.
Beggar thy neighbour, or beggar-my-neighbour, is an expression in economics describing policy that seeks benefits for one country at the expense of others. Such policies attempt to remedy the economic problems in one country by means which tend to worsen the problems of other countries.
The term was originally devised to characterize policies of trying to cure domestic depression and unemployment by shifting effective demand away from imports onto domestically produced goods, either through tariffs and quotas on imports, or by competitive devaluation.
I would also add that it doesn't work. Competitive devaluations don't exist within a vacuum. This rhetoric is but another another illusion that reflects the desperation to find an easy solution.
Source: en.wikipedia.org
Source: finance.yahoo.com
0 comments:
Post a Comment