Surely the printing of more money is why the pound has fallen in values from £1 – $4 to todays rate over the last 50 years ( or from £1 – 40 Deutschmarks to £1- 2.48DM before the Euro).
Richard Murphy says:
Printing money is not in the slightest the issue
The relative value of the currencies reflects differing productivity
Gosh. So, if we start with £100 and $100 and end up with – with no change in growth, productivity, anything else but ceteris paribus – £200 and $100 then the currency values won’t change?
But note the far more interesting policy prescription from Snippa’s insistence. In order to increase productivity we should be more like the US. As that change in relative currency values must be based upon the past changes in productivity…..