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To: JasonC
Actually, the Ruble has risen vs the dollar this year and that is bad. Ruble devaluation is good for Russia, makes American/EU goods to expensive to import and Russian goods very cheap and easy to export. Worked for Japan.
12 posted on 04/21/2003 2:12:47 PM PDT by RussianConservative
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To: RussianConservative
If ruble devaluation is good for Russia, then just get on with it, print a billion times as many rubles as their are now, and make their value go to zero. It'll be great, your currency will be wallpaper and real capital will fly out of the country in huge hunks, and you can call that an "export surplus", while nominal wages will go to the moon, and you can call that "growth".

Japan actually made things. They didn't get an inflationary brainstorm that they could instead live off of the proceeds of counterfeiting until their bubble in the late 1980s. Their economy has not grown since. Inflation and devaluation accomplish nothing, except to protect the connected, allow them to loot others, and avoid the efficiency and discipline of actually investing capital only in worthwhile ways.

16 posted on 04/22/2003 12:33:26 AM PDT by JasonC
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