BERLIN (MNI) – European Central Bank President Jean-Claude Trichet
on Friday again stressed the importance of a strong U.S. dollar.
Trichet was speaking in a panel discussion with Federal Reserve
Chairman Ben Bernanke at an ECB conference in Frankfurt.
Addressing Bernanke, the ECB President said: “You know to which
extent we strongly share the view a strong dollar vis-a-vis the other
major floating currencies is very important and the view that you have
expressed…vis-a-vis surplus countries with exchange rates that are
insufficiently flexible.”
In a speech at the same conference earlier today, Bernanke said a
structurally flawed international monetary system that perpetuates
persistent global imbalances threatens everyone with eventual slow
growth.
Bernanke warned that self-defeating export-led growth strategies
are placing the burden of adjustment on advanced economies with flexible
exchange rates upon which developing economies ultimately depend.
Much of his criticism appeared aimed squarely at China. One of the
charts he used to illustrate his arguments identified China, Taiwan and
Hong Kong as having constrained the adjustment of their currencies the
most.
Ultimately, he said, export-led growth strategies that depend on
undervalued currencies cannot succeed, because it hobbles the growth of
advanced economies — their export customers.
–Berlin bureau: +49-30-22 62 05 80; twidder@marketnews.com
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