Antitrade activists frequently suggest that free trade is a "race to the bottom" and lobby for currencydepreciationin order to improve the export position of American firms.
These developing countries often intervene incurrency markets to prevent currency appreciation and its negative effects on their balance of trade resulting from currencydepreciation and manipulation in other countries.
Such expansionist monetary policies in and of themselves, in isolation regarding the fiscal policies, ultimately lead to a depreciationin the value of the currencies of emerging countries -- rather they lead to a depreciationin the value of the currency of developed countries, thus impairing growth outlooks in emerging countries.
If Greece still had its own currency, it would depreciate substantially against other currencies and much of the necessary reduction in Greek real income would take place via that currencydepreciation.
Investors were awaiting a meeting of Group-of-20 finance ministers in Moscow later in the week, which is expected to confront the issue of deliberate currencydepreciation.