Mr Khan said:
That is what i suggested as well (which i suppose is part of the reason they want to hike interest rates on student loans. Need to at least break even in real dollars, long-run). Presumably currency devaluation also makes American exports more competitive by default |
No, because although I can buy more dollars with my pounds (all else equal), when I get those dollars, I cannot buy as many goods from American businesses, because their prices have increased.
True, there is a timelapse. But if you were using that as a serious policy measure, you would have to exponentially increase the rate of QE each year, and stay above what other countries are doing, with inflation growing higher and higher... meaning, you'd be fucking over the entire country, just to help out a few exporters.
