tag:blogger.com,1999:blog-6297413898275266606.post5795496183547812748..comments2024-03-27T18:15:59.096+08:00Comments on Economics Malaysia: Big Mac Index Yet Againhishamhhttp://www.blogger.com/profile/06265308095732759923noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-6297413898275266606.post-40962782899233654192009-11-12T22:31:21.796+08:002009-11-12T22:31:21.796+08:00Anon,
While I respect Dr Faber's views on the...Anon,<br /><br />While I respect Dr Faber's views on the long term prospects of gold and other metals, he is precisely wrong on the cause. It's more a supply problem relative to demand in my view - check the production statistics. And I won't lay odds against a "chase for yield" driving metal prices up either, in short you may be looking at a gold bubble.<br /><br />There ishishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-20183762071745846202009-11-12T17:20:44.790+08:002009-11-12T17:20:44.790+08:00Dr Marc Faber: "I suppose that even someone w...Dr Marc Faber: "I suppose that even someone without any common sense might understand that a “strong currency” over longer periods of time reflects a high degree of prosperity and economic success, whereas a chronically weak currency is symptomatic of economic imbalances, such as a lack of competitiveness or overconsumption, arising usually from excessive supply of money and credit."<brAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-32905349078806041212009-11-12T09:07:59.792+08:002009-11-12T09:07:59.792+08:00Nehemiah,
Actually if you check my exchange rate ...Nehemiah,<br /><br />Actually if you check my exchange rate posts, I'm almost always talking about MYR appreciation/depreciation with respect to its trade weighted value, and I've displayed both the <a href="http://econsmalaysia.blogspot.com/2009/10/why-imf-thinks-myr-is-undervalued.html" rel="nofollow">IMF trade-weighted series and my own</a>. But when commenting on news reports, the hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-68528813921392223142009-11-11T09:20:27.936+08:002009-11-11T09:20:27.936+08:00Ok. But the debate abt currencies should always be...Ok. But the debate abt currencies should always be focused on which pair u are talking about. The US dollar is in structural decline against most major currencies. Hence, producing some appreciation in the Ringgit in recent months. Does this reflect anything about Msia's economy? If RM strengthens to 2.50/US$, is that what Gunasegaram is calling for and u are against? To avoid this illusion Nehemiahhttps://www.blogger.com/profile/17509970789675666443noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-38152063049242149892009-11-10T16:54:11.774+08:002009-11-10T16:54:11.774+08:00Nehemiah, I'm not sure of the point you are tr...Nehemiah, I'm not sure of the point you are trying to make. I featured this particular article mainly because it was in opposition to the Gunasegaram article, less because I believe the hyperbole. Perhsp I should have made that clear, in which case I aplogise for being disingenous.<br /><br />In any case, my stance <a href="http://econsmalaysia.blogspot.com/2009/11/hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-13108293340294116652009-11-10T12:29:30.024+08:002009-11-10T12:29:30.024+08:00Another point to note is that a rising currency ma...Another point to note is that a rising currency may not reflect robust economic fundamentals. For instance, a country like Australia was once hiking up their interest rates from 2006-2008 and attracted carry trades from Japanese savers. Eventually the currency fell 16% in 2008, wiping out the gains in previous years.<br /><br />Is this the type of currency mirage which could encourage naive Nehemiahhttps://www.blogger.com/profile/17509970789675666443noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-64140437265486015162009-11-10T11:12:57.883+08:002009-11-10T11:12:57.883+08:00A weak or strong currency is neither good nor bad....A weak or strong currency is neither good nor bad. That is because a currency is always weak relative to another currency, which is stregthening. <br /><br />What is important is the causes for the currency movements. The US$ is a structurally weak currency because of rising budget deficits and monetisation of debt. <br /><br />The logic of not buying foreign goods with a strong Ringgit is Nehemiahhttps://www.blogger.com/profile/17509970789675666443noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-9884414242280718032009-11-09T20:30:18.645+08:002009-11-09T20:30:18.645+08:00hello... hapi blogging... have a nice day! just vi...hello... hapi blogging... have a nice day! just visiting here....Anonymousnoreply@blogger.com