Monday, February 18, 2013

What's the difference again?

Did the G-20 Just Signal Further Global Easing?
And according to Goldman Sachs analysts, there's another key difference between the two.

"Whereas competitive devaluation remains a zero-sum game, "competitive monetary easing" is net positive for global growth and effectively helps narrow the world's output gap. At a time of low inflation and high unemployment in many countries, competitive monetary easing is therefore a welcome policy," Goldman analysts wrote in a note to clients on Friday.
Okay, I can get behind that.  But, what exactly is the difference again?  I mean, besides the name.  Because as far as I can tell, they're both just turning on the printing presses.

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