Money Versus Currency: How Governments Steal the Recovery

Money Versus Currency: How Governments Steal the Recovery
Venezuelan 100 bolivar notes thrown by people in a trash bin are seen at a gas station of the Venezuelan state-owned oil company PDVSA in Caracas, Venezuela, on Aug. 20, 2018. Reuters/Marco Bello
Daniel Lacalle
Updated:
Commentary

Most emerging and developed market currencies have devalued significantly relative to the U.S. dollar in 2021 despite the Federal Reserve’s aggressive monetary policy. Furthermore, emerging economies that have benefitted from rising commodities prices have also seen their currencies weaken despite strong exports. As such, inflation in developing economies is much higher than the already elevated figures posted in the United States and the eurozone.

Daniel Lacalle
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat”​ (2015), and “Life in the Financial Markets.”
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