Monetary Contraction Update
By Arnold Kling
Since the start of September, the greenback is up 19% against the Brazilian real, 18% against the South African rand and nearly 9% against the Korean won. It’s up more than 7.5% against the Indian rupee.
Which is what a monetarist would expect if U.S. monetary policy were contractionary. Don’t tell Scott Sumner about this. He’ll think he’s vindicated or something.