Manipulation of Exchange Rates
Countries may gain an advantage in international trade if they manipulate the value of their currency by artificially keeping its value low, typically by the national central bank engaging in open market operations. It is argued that the People's Republic of China has succeeded in doing this over a long period of time.
In 2010, other nations, including Japan and Brazil, attempted to devalue their currency in the hopes of subsidizing cheap exports and bolstering their ailing economies. A low exchange rate lowers the price of a country's goods for consumers in other countries but raises the price of goods, especially imported goods, for consumers in the manipulating country.
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Famous quotes containing the words manipulation of, manipulation, exchange and/or rates:
“Denotation by means of sounds and markings is a remarkable abstraction. Three letters designate God for me; several lines a million things. How easy becomes the manipulation of the universe here, how evident the concentration of the intellectual world! Language is the dynamics of the spiritual realm. One word of command moves armies; the word liberty entire nations.”
—Novalis [Friedrich Von Hardenberg] (1772–1801)
“The principle that human nature, in its psychological aspects, is nothing more than a product of history and given social relations removes all barriers to coercion and manipulation by the powerful.”
—Noam Chomsky (b. 1928)
“Let every woman ask herself: “Why am I the slave of man? Why is my brain said not to be the equal of his brain? Why is my work not paid equally with his? Why must my body be controlled by my husband? Why may he take my labor in the household, giving me in exchange what he deems fit? Why may he take my children from me? Will them away while yet unborn?” Let every woman ask.”
—Voltairine Decleyre (1866–1912)
“In the U.S. for instance, the value of a homemaker’s productive work has been imputed mostly when she was maimed or killed and insurance companies and/or the courts had to calculate the amount to pay her family in damages. Even at that, the rates were mostly pink collar and the big number was attributed to the husband’s pain and suffering.”
—Gloria Steinem (20th century)