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Comment by ctrl_freak | Hacker News Reader

All other things being equal, a weak currency is a good thing for a country. Unfortunately for China, a weak currency comes with a host of other problems, one of the most significant is capital outflow:

http://www.bloomberg.com/news/articles/2015-09-25/china-capi...

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Don't tell the wealthiest country per capita in world history that - Switzerland. One of the few European nations that skated through the last decade almost entirely unscathed. They made a mistake in their attempt at currency debasement a while back, however they've almost always gone with a strong currency, and it has done wonders for their well-being. The median Swiss now earns twice what the median German does.

Also don't tell the US from 1820-1970 that. The strong dollar, backed by a gold standard, enabled the US to become the largest economy at warp speed.

A balanced to strong currency is ideal for a country. It provides increased purchasing power for consumers; it lures foreign capital; it keeps import costs low, including for commodities + producers; it keeps inflation from eroding the standard of living of the bottom 3/4 of citizens that can't hedge inflation; and it generates confidence for consumers, foreign investors, domestic investors, and businesses.

Good thing according to what goal? I think countries have various trade imbalances and rectifying them is good for the country. At the end if the day, though, robots will do most of the work.

Funny enough, post-war Germany traditionally ran a trade surplus and a very strong currency.

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