“I expect an orderly devaluation of around 5% per year till net capital inflow starts subsiding.”
Um…I am REALLY curious how you arrived at a 5% devaluation per year. The dollar has dropped from appx 87 to 79 on the USD index in the past 52 weeks! By my estimate, that’s NINE percent. Oh, and that was BEFORE the whack-ass rate cut yesterday. If the dollar has had that kind of decline when the rates were held steady for four years, you are smoking the finest crack known to man if you think for one minute that the dollar is going to dive at a leisurely 5% per year. Hold on to your hat, fella.
