Re: Subsidies ...

From:         rna@gsb-crown.Stanford.EDU (Robert Ashcroft)
Organization: Graduate School of Business, Stanford University
Date:         29 Feb 96 02:04:11 
References:   1 2
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In article <airliners.1996.161@ohare.Chicago.COM>,
Nguyen Gia Toan <tnguyen@imag.fr> wrote:
>To add another argument to the subsidies debate, why not talk about the
>exchange parity between US and European currencies ?
>Economists agree worldwide that the US dollar is not on par with its real
>value in terms of trade markets and economic value on international
>financial markets.
>This looks very much like (not so) hidden subsidies doesn't it ?

This is absurd.  Currencies go up, currencies go down.  10 years ago
it was the other way around and various American companies were having
a tough time because of it.

Anyone who followed the currency markets the last 10 years knows that
they, the market, set the rates.  The French, in particular, should
know this, after the way the markets took them to the cleaners in '92.

And when I say "market" I mean "market".  That is, thousands of
individual players buying and selling independently.  There's no
Anglo-Saxon cabal conspiring against Europe, though that's the way that
a lot of Europeans seem to view it.

You might notice that the Japanese have had at least the currency problem
that Europe has had over the last few years, but Japanese companies have
been a lot more successful in dealing with it.

RNA