Speculation, tariff threat and the working people - MR Online
mronline.org
It may be thought that just as any tendency towards a financial outflow causes a squeeze on the living conditions of the working people via an exchange rate depreciation, any opposite tendency, towards an inflow of finance (in excess of the autonomously determined current account deficit in any period) should have the opposite effect of appreciating the exchange rate and hence lowering the cost of living, to the benefit of the working masses.

‘She had worn her best saree to come and learn cycling. At a “cycling training camp” in Pudukkottai, Tamil Nadu. She was exuberant with good cause. Some 4,000 very poor women in her district had come to control the quarries where they were once bonded labourers. Their organised struggle, combined with a politically conscious literacy movement, made Pudukkottai a better place’. – P. Sainath Illustration: Vikas Thakur (India) / Tricontinental: Institute for Social Research Reference photo: P. Sainath / People’s Archive of Rural India (PARI) (Madhya Pradesh, July 2014)

It may be thought that just as any tendency towards a financial outflow causes a squeeze on the living conditions of the working people via an exchange rate depreciation, any opposite tendency, towards an inflow of finance (in excess of the autonomously determined current account deficit in any period) should have the opposite effect of appreciating the exchange rate and hence lowering the cost of living, to the benefit of the working masses.

From MR Online via This RSS Feed.