My note on Susan Stange's *mad money: when markets outgrow governments* Univ of Michigan, 1998.
You wrote:
>Not enough emphasis is given here to the power of the global financial
>regulatory community acting through the BIS and sister organisations.
Strange analyzes at length how the regulatory community has been and is being circumvented.
> Sophisticated computer
>systems have changed not very much about the business
She argues not true.
><dd>++++++++++++++++++++++
> If the US really could do this so well, why hasn't
>Japan reflated? But still interesting argument
></dd>
The US may have such power. Volcker considered Baker's veiled threats of further dollar devaluations in 1986 as an aggressive means of forcing Germany and Japan to take more aggressive expansionary action (quoted in Robt Solomon Money on the Move, p. 25). Summers may today be refusing to stem the dollar's decline in order to force Japan into further expansionary policy (or perhaps into further trade and financial liberalisation).
Yours, Rakesh