This week I have been conducting a running conversation with Desmond Lachman about the currency markets and the potential role of the IMF. Mr. Lachman believes that the IMF should be more involved in the market to prevent countries such as China from manipulating their currencies to gain a trade advantage. I share Mr. Lachman’s [...]
Desmond Lachman’s latest response:
Dear Mr. Calhoun,
Thank you for your e-mail.
You raise several interesting questions, which I will try to answer in turn and which you should feel free to post if you choose:
Government Intervention: My idea is certainly not to have government intervention in currency markets in the normal sense of the term. Rather, it [...]
A couple of days ago, I posted a response to an article by AEI Scholar Desmond Lachman. Mr. Lachman, who I’m sure is very busy with scholarly things at AEI, was kind enough to respond. Here is his initial response and my comments:
Dear Mr. Calhoun,
Thanks for your e-mail and for sharing with me your response [...]
In the article linked above, AEI scholar Desmond Lachman bemoans the lack of government control over the currency market:
Even more troubling than today’s growing payment imbalances is the fact that, the IMF notwithstanding, there appear to be no rules as to what countries might do with their exchange rates. Some countries seem free to fix [...]
