Reply To: Devaluation of currencies.


But this will not make Japan richer, because than they have to pay more for imports?

Also because of the inflation the money of the Japanese people has less value?

So it seems that the Japanese exporters are gaining at the expense of the importers and Japanese people?

” With money, if international currency speculators make more accurate anticipations than the man on the street, when the money stock is increased the currency tends to devalue in foreign exchange markets before its purchasing power goes down domestically. When that happens exporters gain a temporary advantage. ”

At whose expense do they gain a temporary advantage?

” As long as Japanese exporters sell their outputs in countries where the yen is devaluing against foreign currency and buy at least some of their inputs in countries where the yen is not depreciating commensurately, they would gain. ”

The free market makes both in free trade better, But one of the problems with government is that they make alot of times one group richer at expense of other groups?