Final Word from Thursday, August 2, 2018
If the Czech Republic were on Donald Trump's radar, which it isn't, he might send out a tweet tonight: "Thank you Jiri Rusnok for raising interest rates and Revaluing the Crown. I love Czech. You're helping our exports. I'm for America First & the American Worker." Trump's policies aren't always easy to understand, but when he criticizes China and the EU for manipulating down their currencies and interests rates, it's clear that he's worried about the impact of this on U.S. exports. His own Federal Reserve is working against him by driving interest rates up, he says. No Czech politician is as vocal as this, but the situation here is similar. The CNB devalued the currency for 41 months as a way to boost the economy, but now it's revaluing the currency to achieve the opposite. It's waiting for a recession and doing what it can to make sure it happens. This is good for Trump for now, but when the recession comes, how many Czechs will have the money to buy his exports? [Czech Republic National Bank devaluation Great Devaluation USA United States hike European Union Jiří]
Glossary of difficult words
revaluation - opposite of a devaluation; upward adjustment of the value of a currency in relation to other currencies;
to be on someone's radar - to come to the attention of a person or group;
to manipulate down/lower - to bring about a reduction in price or value.