Monday, April 16, 2012

What Is Dilma Rousseff talking about ?

At the failed summit of the Americas she complained about loose US monetary policy causing the dollar to depreciate hurting other countries exports. What depreciation ? The exchange rate is about the same as it was 2 years ago and the dollar has recently appreciated against the Real.

Looking at the data, I wondered if she was worried that the US was deliberately driving down the value of the Real.  No actual US policy would do this, but at least it fits the recent data.  Instead the appreciation of the dollar is unappreciated.

I'm relying on raw story.

Brazil’s President Dilma Rousseff has voiced concern to US President Barack Obama that the easy money policies of developed countries threaten the growth of emerging economies like Brazil.
The comments from the leader of Brazil, the world’s sixth largest economy, came Monday on her first visit to the White House — for talks that yielded little in the way of concrete announcements.
“Such expansionist monetary policies… ultimately lead to a depreciation in the value of the currencies of developed countries, thus impairing growth outlooks in emerging countries,” Rousseff said.

 The point is that, since I honestly couldn't tell if she was making one complaint or an opposite complaint, I don't think she has much of a case.

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