Having a powerful currency is bad for your econo-

Being a tax haven is bad for your econo-

>>1768581
having a strong currency leads to weaker trade balance, as foreign countries will buy less of your exports, because they can produce it cheaper.

The weaker our currency, the more we export. The more we export, the smaller our trade balance deficit. Simple international finance really.

>>1768585
Which is why China kept the RMB pegged to the USD for so long and it worked...

>>1768588
That kept it undervalued ya dingus

>>1768592
right which kept the price of labor and goods lower for Americans

>>1768581
Having a pegged currency is bad for your economy... although some countries have done well despite it.

>>1768581
>confusing cause and effect

>>1768581
Switzerland is a brand not a country man

>>1768581
It is. When the SNB released the ceiling in 2014 out of the blue it was pretty brutal. Exports dropped, tourism bookings dropped, share prices dropped. If it was at all sustainable they would have liked to keep the CHF artificially low, but it was just too costly.

>>1768581
>>1768585
artificially weakening your own currency is the equivalent of subsidizing other countries imports, it's fucking retarded and impoverishes your own population
trade balance isn't everything in an economy, you have a XVIII-century mercantilist mentality. Why should a country as rich, powerful and highly skilled as the United States have an export-oriented economy?

>>1768820

why is it that everybody does this?

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>>1768847
because it's (((THEIR))) excuse to keep the credit expansion and wealth transfer to those who first spend that fresh new printed money, preserve priviledges of the governments

every politician wants it because that system allows them retarded budgets that wouldn't be even posible otherwise

why? incentives

the people who design the clusterfuck are not going to pay for it
>you've been paying it
>you're paying it
>you're gonna pay it

>>1768847
who is everyone?

The Eurozone, the UK, Australia, Japan, Norway, Canada, Sweden, America?
They all have a free floating exchange rate.
Apparently only shitholes with impoverished populations engage in currency devaluation, maybe that's why they are poor. Why do they do it? Possibly foreign companies' and domestic exporters' lobby.

>>1768870
implying all the countreis you mentioned don't practice currency devaluation

they do! they just do it moderatedly at consistent rates between each.
Every time they talk about avoiding deflation the true meaning is that they're doing a constant minimal devaluation.

Is your GF a whore when she fucks few chad or when she fucks a lot of chads?
makes you think

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>>1768606

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>>1768581
Seriously though, is there any reason why Switzerland is doing well in spite of their monetary policy? Deflation sent the Japanese into a Lost Decade, going on two (if it isn't there already), and has Europe on track for a similar path (at least low inflation).

Is it the structure of the economy? Given Japan's export-oriented economy, it is understandable why there would be such significant economic losses from deflation. But comparing the Eurozone to Switzerland, is there any reason why the Eurozone has stagnated while Switzerland has been doing relatively well?

>>1768942
Switzerland is a rich white country with genuine local democracy and bank accounts for wealthy people.

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>>1768953
So is it a bit like Singapore in that respect? Are banking centers immune to deflationary/inflationary pressures or something?

>>1768965
Banking ist just a glorified myth. In reality it's accountable for about 11% of the Swiss GDP. Even tourism is bigger.

https://www.eda.admin.ch/aboutswitzerland/en/home/wirtschaft/uebersicht/wirtschaft---fakten-und-zahlen.html

>>1768999
Good link. Too many people discount the relevance of the services sector for the muh manufacturing jerbs meme. Does this have any lessons for the United States, where financial services are like ~10-15% of GDP if I recall

>>1768585
>BAWWWWW MUH EXPORTS
Who gives a shit about exports when your economy is so strong you can just import things?

Prices are super low for consumers and service jobs are more prevalent and you can buy a lot more things with these jobs now.

>>1768596
Which is why the Swiss abolished it and their living standards rose dramatically.
They actually had deflation(which was good for their economy).

>>1768604
Not really lol stay mad.

>>1768617
Ah man how brutal, the Swiss economy had to correct itself for a few months and the result was a much higher living standard for the Swiss people lol

>>1768942
>muh japan lost decade
https://mises.org/library/myth-japans-lost-decades

>>1768942
>But comparing the Eurozone to Switzerland, is there any reason why the Eurozone has stagnated while Switzerland has been doing relatively well?
Because the true redpill is that deflation is good for the economy.

In fact it's the REAL way countries gain high living standards.

We'd probably all have a 3 day work week and super low prices if we had deflation.

>implying switzerland is poor

>>1769305
that's the point of the thread, dummy

>>1769311

Uhh isn't switzerland like literally the richest country in the world unless you count meme countries?

>>1769315
>Uhh isn't switzerland like literally the richest country in the world unless you count meme countries?
YES

THAT'S WHY I MADE THIS FUCKING THREAD

HOLY SHIT

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>>1769299
Explain the Great Depression then

>>1769360
im gonnaplay devil's advocate and assume he is talking about 'deflation' that arises from lowering of prices due to productivity and not due to any monetary policy, which anon obviously doesnt understand

>>1769360
Please read this book.

https://en.wikipedia.org/wiki/America's_Great_Depression

>Rothbard holds the interventionist policies of the Herbert Hoover administration responsible for magnifying the duration, breadth, and intensity of the Great Depression.[1] Rothbard explains the Austrian theory of the business cycle, which holds that government manipulation of the money supply sets the stage for the familiar "boom-bust" phases of the modern market. He then details the inflationary policies of the Federal Reserve from 1921 to 1929 as evidence that the depression was essentially caused not by speculation, but by government and central bank interference in the market.

>>1769378
>im gonnaplay devil's advocate and assume he is talking about 'deflation' that arises from lowering of prices due to productivity and not due to any monetary policy
This is what I am referring to.

Don't buy bitcoin it's going to cra-