You Heard It Here Second: Global Currency Intervention

Our Economist House Caller, Simon Johnson has an interesting post: he's hearing that the 7 richest countries will announce a major intervention into world currency markets this weekend.

Coordinated intervention, announced over the weekend most likely, will involve selling dollars, selling yen, buying euros and pounds. This can calm things, by showing there are no one way bets. (Will the Chinese be involved?)

We Americans might instinctively like hearing that the dollar is getting stronger. But it can be destabilizing if the dollar is getting stronger too fast and erratically.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.