Friday, May 31, 2013

Apple Raises Prices for Some Products in Japan on Yen

Sovereign countries devalue their currencies as an attempt to stimulate their exports.  It's usually successful in the short-term, but the unintended consequences are higher import prices and inflation (despite official justification for mild inflation), which in the long run, dampens the economy.  And when all countries engage in the "beggar-thy-neighbor" currency war of devaluation, international trade stalls, even when inflation rises.  See Great Depression.  See today.

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