A Quote by Steve Hanke

Trade balances are determined by national savings propensities, not exchange rates.

Steve Hanke

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Balances Determined Exchange Exchange Rate National Rates Savings Trade

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Steve Hanke
American - Economist
Born: December 29, 1942

If a trade deficit is determined solely by rates of savings and investment, then the U.S. trade deficit will be impervious to a get-tough trade policy. Slapping higher tariffs on imports will only deprive foreigners of the dollars they would have earned by selling in the U.S. market.

Daniel T. Griswold

The whole idea of having a free trade area when you have gyrating exchange rates doesn't make sense at all. It just spoils the effect of any kind of free trade agreement.

Robert Mundell

Well, the U.S. is running a current account deficit; we are creating lots of investment opportunities in the United States that exceed our own domestic savings rates, so the issue here is to encourage higher savings rates in the United States.

John W. Snow

Liberal economists conceive of societies as black boxes connected by exchange rates; as long as exchange rates are correct, what goes on inside the black box is regarded as not very important.

Robert Gilpin

In stabilizing the macroeconomic environment, we have focused on aligning fiscal with monetary policy and nudging the central bank toward the objective of more market-determined exchange rates.

Yemi Osinbajo

Trump will fail even in his proclaimed goal of reducing the trade deficit, which is determined by the disparity between domestic savings and investment.

Joseph Stiglitz

Most savings rates are based on underlying interest rates.

Martin Lewis

With interest rates artificially low, consumers reduce savings in favor of consumption, and entrepreneurs increase their rates of investment spending.

Steve Hanke

To achieve a more balanced international system over time, countries with excessive and unsustainable trade surpluses will need to allow their exchange rates to better reflect market fundamentals.

Ben Bernanke

I have long argued that paying down the national debt is beneficial for the economy: it keeps interest rates lower than they otherwise would be and frees savings to finance increases in the capital stock, thereby boosting productivity and real incomes.

Alan Greenspan

Let's have honest interest rates. Let's let the free market set interest rates in that zone where supply of savings is matched up with demand for real borrowing for capital projects.

David Stockman

A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank.

Ron Paul

Obviously, people with low or even moderate incomes could not afford such savings rates, and even diligent savings from their low wages would not be enough to pay for either retirement or healthcare.

William Greider

With our national savings rate well below one-percent, it is imperative that the government embrace innovative and cost-effective means of boosting personal savings.

Jim Cooper

What is important is that in a capital-scarce country like India, the real interest rate needs to be positive enough to encourage healthy growth of financial savings; we get into macro difficulties when real rates on financial savings become negative for a length of time.

Urjit Patel

Just as people have long believed that strengthening ties of trade improves the prospects for peace and the free exchange of ideas, Facebook friendships or Twitter followings already transcend national borders.

Douglas Alexander

A Quote by Steve Hanke

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